Title The value of institutions for financial markets : evidence from emerging markets / prepared by Bernardin Akitoby and Thomas Stratmann

Published [Washington, D.C.] : International Monetary Fund, African Dept and Fiscal Affairs Dept., 2009

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Description 1 online resource (21 pages) Series IMF working paper ; WP/09/27 Working paper (International Monetary Fund. African Dept and Fiscal Affairs Department). 09/27 Contents I. Introduction; II. Analytical Framework; A. The Empirical Model; B. Testing the Impact of Institutions on Spreads; III. Empirical Strategy for Fiscal Policy Variables; IV. Data Description and Results; A. Data Description; B. Results; Tables; 1. Means and Standard Deviations; 2. Effects of Institutions on Spreads-OLS Estimates (Baseline); 3. Effects of Institutions on Spreads-Fixed Effects Estimates (Baseline); 4. Effects of Institutions on Spreads in the Presence of Fiscal Variables-OLS Estimates 5. Effects of Institutions on Spreads in the Presence of Fiscal Variables-Fixed Effects EstimatesC. Sensitivity and Robustness; V. Conclusions; Appendix Table; A1: List of Countries Included; References Summary This paper investigates the value of political institutions for financial markets, using panel data from emerging market countries. We test the hypothesis that changes in political institutions, such as improvements in democratic rights and increased government accountability, have a direct effect on sovereign interest rate spreads. We find that financial markets value institutions over and above the economic and fiscal outcomes these institutions shape. Democracy and accountability generally lower sovereign spreads, political risk tends to increase them, and financial markets tend to view election years negatively Bibliography Includes bibliographical references Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL English Print version record digitized 2011 HathiTrust Digital Library committed to preserve pda MiAaHDL Subject Fiscal policy -- Econometric models Capital market. Capital market Fiscal policy -- Econometric models Form Electronic book Author Stratmann, Thomas, author International Monetary Fund. African Dept and Fiscal Affairs Department ISBN 1462358802 9781462358809 1452781354 9781452781358 1451871740 9781451871746 1282842498 9781282842496 9786612842498 6612842490

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