Abstract

https://ssrn.com/abstract=2716660
 


 



Valuing Peace: The Effects of Financial Market Exposure on Votes and Political Attitudes


Saumitra Jha


Stanford Graduate School of Business

Moses Shayo


The Hebrew University of Jerusalem - Department of Economics

August 26, 2016

Stanford University Graduate School of Business Research Paper No. 16-7

Abstract:     
Financial markets expose individuals to the broader economy. Does participation in financial markets also lead citizens to re-evaluate the costs of conflict, their views on politics and even their voting decisions? Prior to the 2015 Israeli elections, we randomly assigned financial assets from Israeli and Palestinian companies to likely voters and gave them incentives to actively trade for up to seven weeks. Exposure to financial markets systematically shifted vote choices and increased support for peace initiatives. We delineate the mechanisms for this change and show that financial market exposure led to learning and reevaluation of the economic costs of conflict.

Number of Pages in PDF File: 69

Keywords: Financial Markets, Conflict, Peace, Political Economy

JEL Classification: C93, D72, D74, N2, O12


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Date posted: January 16, 2016 ; Last revised: August 28, 2016

Suggested Citation

Jha, Saumitra and Shayo, Moses, Valuing Peace: The Effects of Financial Market Exposure on Votes and Political Attitudes (August 26, 2016). Stanford University Graduate School of Business Research Paper No. 16-7. Available at SSRN: https://ssrn.com/abstract=2716660 or http://dx.doi.org/10.2139/ssrn.2716660

Contact Information

Saumitra Jha (Contact Author)
Stanford Graduate School of Business ( email )
655 Knight Way
Stanford, CA 94305-5015
United States

Moses Shayo
The Hebrew University of Jerusalem - Department of Economics ( email )
Mount Scopus
Jerusalem, IL 91905
Israel
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