Kiel Working Papers, Kiel Institute for World Economics
No 1203:
Politics and the Stock Market ; Evidence from Germany
Jörg Döpke and Christian Pierdzioch
Abstract: We analyze the interaction of stock market movements and
politics in Germany. In contrast to the empirical evidence available for
the U.S., we do not find that German stock market returns tend to be higher
during liberal than during conservative governments. Also in contrast to
results for the U.S., we find no evidence for an election cycle in German
stock market returns. However, estimated popularity functions and VARs
suggest that stock market returns have had an impact on the popularity of
German governments. We find that this result is robust across different VAR
specifications and time periods.
Keywords: Political business cycle; Stock market, Germany; (follow links to similar papers)
JEL-Codes: E32,; E44,; G12; (follow links to similar papers)
30 pages, March 2004
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
kap1203.pdf 
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom
