FINANCIAL MARKETS' SHUTDOWN AND REACCESS. (1st November 2017)

• Record Type: Journal Article
• Authors: Agnello, Luca; Castro, Vítor; Sousa, Ricardo M.
• Is Part Of: Economic inquiry. Volume 56:Number 1(2018)
• Page Start: 562
• Page End: 571
• Publication Date: 2017-11-01
• Subjects: Economics -- Periodicals; 330.05
• DOI: 10.1111/ecin.12518
• Languages: English
• ISSNs: 0095-2583

Abstract

Abstract : We employ a discrete‐time parametric duration model on a group of 121 countries over the period 1970–2011 and find that the probability of the end of financial markets' shutdown and reaccess falls as these events become longer. We also show that: (1) shutdown episodes are longer when economic prospects are poor and the degree of financial openness falls, the chief executive has been in office for long periods, and the country has a default history and (2) spells of reaccess tend to be longer when economic growth improves and financial openness increases, there are neither government crises nor government instability, and the country did not default in the past. ( JEL C41, G15)