Integration of Trans-Atlantic Capital Markets, 1790–1845

Richard Sylla; Jack W. Wilson; Robert E. Wright

doi:10.1007/s10679-006-9007-6

Review of Finance Vol. 10 No. 4 2006

Integration of Trans-Atlantic Capital Markets, 1790–1845

Richard Sylla¹; Jack W. Wilson²; Robert E. Wright¹

¹ Stern School of Business, New York University, and NBER 1 · ² College of Management, North Carolina State University 2

Abstract

During the 1790s, European investors began to purchase substantial quantities of US government and corporate securities. A number of these securities were traded in markets on both sides of the Atlantic. Based on market price quotations we compiled for the same securities in London and New York markets, we ask if these early trans-Atlantic securities markets were integrated, and, if so, when they became integrated. We find little evidence of market integration before 1816, and substantial evidence of it thereafter. Financial globalization – the convergence of financial asset prices in markets on different continents – began earlier than most have suspected.

DOI: 10.1007/s10679-006-9007-6
Volume: 10
Issue: 4
Pages: 613-644
Language: en
Sources: bibtex:phds-export.bib openalex crossref

Integration of Trans-Atlantic Capital Markets, 1790–1845

Abstract

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