Please use this identifier to cite or link to this item: https://repositorio.uca.edu.ar/handle/123456789/2280
Título : Grading latin american presidents : a view from the stock markets
Autor : Cruces, Juan José 
García-Cicco, Javier 
Palabras clave : BENCHMARKINGMERCADO DE VALORESDESARROLLO ECONOMICOPRESIDENTES
Fecha de publicación : 2012
Editorial : Universidad Católica Argentina. Facultad de Ciencias Económicas
Cita : Cruces, J.J., García-Cicco, J. (2012, junio). Grading latin american presidents : a view from the stock markets [en línea]. Documento de trabajo No. 37. Escuela de Economía “Francisco Valsecchi”. Facultad de Ciencias Económicas. Universidad Católica Argentina. Disponible en: https://repositorio.uca.edu.ar/handle/123456789/2280
Resumen : Abstract: We use stock returns to grade presidential economic performance. In efficient markets, asset prices are unique in that they impound the long term effects of changes in the environment, including government policy. To purge national returns of state-of-the-world conditions that do not result from local events, we introduce a global twin portfolio and a regional return. The twin portfolio for a country reports the return of a combination of world stocks that each month has the same industrial composition as that one country’s stock index. These benchmark external conditions are most volatile: they vary between a 295% appreciation (or tailwind under some interpretations) and a 30% reduction (or headwind) in asset prices over extreme four-year presidencies in our sample. We interpret the gap of national performance over these counterfactual returns as a proxy for the quality of domestic policies during a given presidency, as seen from the standpoint of equity investors. We apply this approach to seven Latin American countries from 1980 until 2011. From this perspective, Colombia, Peru and Chile stand out as the countries that have implemented the best long run policies over the sample. In addition, we provide a grading of relative presidential performance.
Cobertura Espacial: AMERICA LATINA
URI : https://repositorio.uca.edu.ar/handle/123456789/2280
Disciplina: ECONOMIA
Derechos: Acceso Abierto
Appears in Collections:DTE 2012

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