Valuing Peace: The Effects of Financial Market Exposure on Votes and Political Attitudes
76 Pages Posted: 16 Jan 2016 Last revised: 16 Mar 2018
Date Written: February 11, 2018
Financial markets expose individuals to the broader economy. Does participation in financial markets also lead individuals to re-evaluate the costs of conflict, their views on politics and even their votes? 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. Opportunities to trade in financial markets systematically shifted vote choices and increased support for peace initiatives. These effects persist a year after the experiment, and appear consistent with financial market exposure leading to increased awareness of the economic risks of conflict.
Keywords: Financial Markets, Conflict, Peace, Political Economy
JEL Classification: C93, D72, D74, N2, O12
Suggested Citation: Suggested Citation