FINANCIAL MARKETS' SHUTDOWN AND REACCESS |
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| Authors: | Luca Agnello Vítor Castro Ricardo M. Sousa |
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| Affiliation: | 1. +39 091 23895268;2. Associate Professor, Faculty of Economics, Department of Economics, Business and Statistics, University of Palermo, 90128 Palermo, Italy;3. +44 (0)1509 222706+44 (0)1509 223910;4. Senior Lecturer, School of Business and Economics, Loughborough University, Loughborough, Leicestershire LE11 3TU, UK;5. Department of Economics and Economic Policies Research Unit (NIPE), University of Minho, 4710‐057 Braga, Portugal |
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| 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) |
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