1.

Record Nr.

UNINA9910464255003321

Autore

Akitoby Bernardin

Titolo

The value of institutions for financial markets [[electronic resource] ] : evidence from emerging markets  / / prepared by Bernardin Akitoby and Thomas Stratmann

Pubbl/distr/stampa

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

ISBN

1-4623-5880-2

1-4527-8135-4

1-4518-7174-0

1-282-84249-8

9786612842498

Descrizione fisica

1 online resource (23 p.)

Collana

IMF working paper ; ; WP/09/27

Altri autori (Persone)

StratmannThomas

Soggetti

Fiscal policy - Econometric models

Capital market

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"February 2009."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

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

Sommario/riassunto

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 ele