An event study of institutions and currency crises

We use event study methodology to examine the behavior of seven institutional variables eighteen months prior to and after a currency crisis. Our data on institutions include bureaucratic quality, corruption, ethnic tensions, external conflict, internal conflict, government stability, and law and or...

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Main Authors: Shimpalee P.L., Breuer J.B.
Format: Article
Language:English
Published: 2014
Online Access:http://www.scopus.com/inward/record.url?eid=2-s2.0-34447632019&partnerID=40&md5=d7fd2564acf7fe0d6014d1f953af9a66
http://cmuir.cmu.ac.th/handle/6653943832/1207
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Institution: Chiang Mai University
Language: English
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spelling th-cmuir.6653943832-12072014-08-29T09:20:19Z An event study of institutions and currency crises Shimpalee P.L. Breuer J.B. We use event study methodology to examine the behavior of seven institutional variables eighteen months prior to and after a currency crisis. Our data on institutions include bureaucratic quality, corruption, ethnic tensions, external conflict, internal conflict, government stability, and law and order over the period 1984-2002. Our country coverage includes forty industrial, emerging market, and developing economies for various regions of the world. The graphical event study shows that there are many instances where institutions are weaker in periods before and after a currency crisis than during tranquil periods. The evidence is most compelling for government stability, law and order, bureaucratic quality, and corruption. We also test for differences in the mean values of institutional variables in turbulent periods around a crisis event and tranquil, non-crisis periods. Results from our tests generally complement evidence from the event study. ? 2006 Elsevier Inc. All rights reserved. 2014-08-29T09:20:19Z 2014-08-29T09:20:19Z 2007 Article 10583300 10.1016/j.rfe.2006.06.002 http://www.scopus.com/inward/record.url?eid=2-s2.0-34447632019&partnerID=40&md5=d7fd2564acf7fe0d6014d1f953af9a66 http://cmuir.cmu.ac.th/handle/6653943832/1207 English
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
language English
description We use event study methodology to examine the behavior of seven institutional variables eighteen months prior to and after a currency crisis. Our data on institutions include bureaucratic quality, corruption, ethnic tensions, external conflict, internal conflict, government stability, and law and order over the period 1984-2002. Our country coverage includes forty industrial, emerging market, and developing economies for various regions of the world. The graphical event study shows that there are many instances where institutions are weaker in periods before and after a currency crisis than during tranquil periods. The evidence is most compelling for government stability, law and order, bureaucratic quality, and corruption. We also test for differences in the mean values of institutional variables in turbulent periods around a crisis event and tranquil, non-crisis periods. Results from our tests generally complement evidence from the event study. ? 2006 Elsevier Inc. All rights reserved.
format Article
author Shimpalee P.L.
Breuer J.B.
spellingShingle Shimpalee P.L.
Breuer J.B.
An event study of institutions and currency crises
author_facet Shimpalee P.L.
Breuer J.B.
author_sort Shimpalee P.L.
title An event study of institutions and currency crises
title_short An event study of institutions and currency crises
title_full An event study of institutions and currency crises
title_fullStr An event study of institutions and currency crises
title_full_unstemmed An event study of institutions and currency crises
title_sort event study of institutions and currency crises
publishDate 2014
url http://www.scopus.com/inward/record.url?eid=2-s2.0-34447632019&partnerID=40&md5=d7fd2564acf7fe0d6014d1f953af9a66
http://cmuir.cmu.ac.th/handle/6653943832/1207
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