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Democratic Processes and Financial Markets: Pricing Politics
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Democratic Processes and Financial Markets: Pricing Politics Paperback - 2006 - 1st Edition

by William Bernhard; David Leblang


From the publisher

The authors examine the conditions under which democratic events, including elections, cabinet formations, and government dissolutions, affect asset markets. Where these events have less predictable outcomes, market returns are depressed and volatility increases. In contrast, where market actors can forecast the result, returns do not exhibit any unusual behavior. Further, political expectations condition how markets respond to the political process. When news causes market actors to update their political beliefs, market actors reallocate their portfolios, and overall market behavior changes. To measure political information, Professors Bernhard and Leblang employ sophisticated models of the political process. They draw on a variety of models of market behavior, including the efficient markets hypothesis, capital asset pricing model, and arbitrage pricing theory, to trace the impact of political events on currency, stock, and bond markets. The analysis will appeal to academics, graduate students, and advanced undergraduates across political science, economics, and finance.

First line

Political processes - elections, cabinet formations, referenda, legislative debates - determine a government's economic policies, which, in turn, condition the environment for investment.

Details

  • Title Democratic Processes and Financial Markets: Pricing Politics
  • Author William Bernhard; David Leblang
  • Binding Paperback
  • Edition number 1st
  • Edition 1
  • Pages 272
  • Volumes 1
  • Language ENG
  • Publisher Cambridge University Press
  • Date July 24, 2006
  • Illustrated Yes
  • Features Bibliography, Illustrated
  • ISBN 9780521678384 / 0521678382
  • Weight 0.83 lbs (0.38 kg)
  • Dimensions 9 x 5.9 x 0.7 in (22.86 x 14.99 x 1.78 cm)
  • Library of Congress subjects Economics - Political aspects, International economic relations
  • Library of Congress Catalog Number 2006008543
  • Dewey Decimal Code 332.041
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Democratic Processes and Financial Markets: Pricing Politics
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Democratic Processes and Financial Markets: Pricing Politics

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Democratic Processes and Financial Markets: Pricing Politics
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Democratic Processes and Financial Markets: Pricing Politics

by Bernhard, William; Leblang, David

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Democratic Processes and Financial Markets: Pricing Politics
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Democratic Processes and Financial Markets: Pricing Politics

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Democratic Processes and Financial Markets: Pricing Politics
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Democratic Processes and Financial Markets: Pricing Politics

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DEMOCRATIC PROCESSES AND FINANCIAL MARKETS
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DEMOCRATIC PROCESSES AND FINANCIAL MARKETS

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Democratic Processes and Financial Markets: Pricing Politics

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Democratic Processes and Financial Markets
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Democratic Processes and Financial Markets

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Paperback / softback. New. Examines the conditions under which democratic events, including elections, cabinet formations, and government dissolutions, affect asset markets. Where these events have less predictable outcomes, market returns are depressed and volatility increases. To measure the predictability of political outcomes, the authors employ sophisticated models of the political process from political science.
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