Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174428
Authors: 
Girardi, Daniele
Bowles, Samuel
Year of Publication: 
2017
Series/Report no.: 
Working Paper, University of Massachusetts, Department of Economics 2017-19
Abstract: 
To study the effect of political and institutional changes on the economy, we look at share prices in the Santiago exchange during the tumultuous political events that characterized Chile in the early 1970s. We use a transparent empirical strategy, deploying previously unused daily data and exploiting two largely unexpected shocks which involved substantial variation in policies and institutions, providing a rare natural experiment. Allende's election and subsequent socialist experiment decreased share values, while the military coup and dictatorship that replaced him boosted them, in both cases by magnitudes unprecedented in the literature.
Subjects: 
institutional shocks
natural experiment
share prices
Chile
socialism
military coup
elections
JEL: 
P00
P16
D02
E02
N2
Document Type: 
Working Paper

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