Asset Market Perspectives on the Israeli-Palestinian Conflict

Asaf Zussman, Noam Zussman () and Morten Nielsen
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Noam Zussman: Bank of Israel

No 2006.02, Bank of Israel Working Papers from Bank of Israel

Abstract: The Israeli-Palestinian conflict has played a salient role in world affairs in recent decades. This paper locates turning points in the conflict since the late 1980s using asset market data from Israel and Palestinian Authority (PA). We find that major escalations in violence, such as the outbreak of the Intifada in 2000, lead to significant declines in asset prices in both Israel and the PA. Conversely, major peace initiatives, such as the Oslo accords in 1993 and the Road Map plan in 2003, lead to substantial increases in asset prices on both sides of the conflict. An additional novel finding is that asset markets respond positively to the success of politicians who favor a negotiated settlement to the conflict.

Keywords: Foreign Exchange Market; Israeli Palestinian Conflict; Stock Market; Structural Breaks; Turning Points (search for similar items in EconPapers)
JEL-codes: G14 H56 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2006-02
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Citations: View citations in EconPapers (2)

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https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2006.02.pdf First version, 2006 (application/pdf)

Related works:
Journal Article: Asset Market Perspectives on the Israeli–Palestinian Conflict (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:boi:wpaper:2006.02

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