Royal African Company Share Prices during the South Sea Bubble

Price bubbles provide a unique opportunity to test whether investors act rationally and have sufficient knowledge of the economic environment in which they trade. We focus our attention on the 1720 South Sea bubble episode as experienced by a company not involved in governmental debt financing—the Royal African Company. Following the example of the South Sea Company, the Royal African Company lent its funds to equityholders at a preferential rate. Recognizing this benefit along with the announced dividends explains a large portion of the bubble. Furthermore, the unexplained residual does not behave like an exploding bubble, casting doubt that speculative excess motivated market participants in 1720. Our findings are indeed consistent with investor rationality, and the unexplained residual suggests that we are missing information that was available to the British financial market in 1720.     

The micro‐foundations of the early London capital market: Bank of England shareholders during and after the South Sea Bubble, 1720–251

Using two sources, Bank of England Transfer Books and Stock Ledgers, this article explores the nature of the ‘customer base’ for Bank shares during and after the South Sea Bubble. This examination uncovers the nature of individual participation in this early capital market. The Transfer Ledgers record roughly 7,000 transfers during 1720, while the Ledger Books from 1720–25 record over 8,000 individuals holding stock. The analysis finds the customer base had breadth and depth, comprising individuals from across the social spectrum, from all over England and Europe. The market was diverse and liquid. Activity during the Bubble came from those living in and around London, with most traders participating in the market only twice at most. While the majority of participants were men, there was a sizeable female presence. Men as a group lost money from their market activity, but women made money. In the five years after the Bubble, the customer base was sustained. The analysis argues that the secondary market in financial assets cannot be dismissed as mere gambling devices, and that the basis for a mutually productive interaction between the financial sector and the real sector of the economy was already in existence and was sustained through the shock of the South Sea Bubble and its collapse.     

美国的债务、金融泡沫及其对世界的影响

2005年全球经济的失衡成为世界经济的热门话题,国际经济组织与许多著名经济学家都参与了这场辩论.一个不可争辩的事实是,全球经济的确失衡了.它表现为:各国之间经济增长的差距在拉大、单个国家内及国家之间的贫富收入差距在扩大、各国的储蓄与投资差距似乎也在扩大,发达国家与发展中国家相互之间及发展集团之间的差距在扩大,等等.     

A panel data analysis of the formal-informal sector labour market linkages in South Africa

This study explores the labour market linkages between the informal and formal sectors, using the first four waves of the National Income Dynamics Study data. The main focus is on three groups of employed: worked in the formal sector in all waves; worked in the informal sector in all waves; moved between the two sectors across the waves. Only 27% of informal sector workers in wave 1 transitioned to the formal sector in wave 4; 38% remained in the informal sector while 33% had their status changed to either inactive or unemployed. The econometric analysis indicates that older and more educated individuals living in urban areas and coming from households with fewer old-age grant recipients are significantly more likely to work in the formal sector, whereas more educated white males are associated with a significantly greater likelihood of transitioning from informal to formal sector employment.     

The shape of demand for high-level agricultural skills in the South African labour market

A supply of high-level agricultural skills is foundational to the South African agricultural sector's capacity to improve the quality and range of agricultural products and services so as to support small agricultural producers, meet domestic needs for food security and increase the competitiveness of local products on global agricultural markets. Concerns about the coexistence of graduate unemployment and skills shortages in the agricultural sector prompt the question: What is the shape of demand for high-level agricultural skills in the South African labour market? To answer this, the authors conducted 83 interviews with respondents in private, public and non-governmental organisations involved in agriculture. The findings reveal a rising demand for high-level agricultural skills among farmers, farm managers and foremen; in research and product development; in the sales and marketing functions of firms supplying primary agriculture; in government entities across a wide range of occupations; and in public and private sector R&D.     

The structure of the market for wool in early medieval Lincolnshire1

Peasant producers are now recognized as having played an important part in the late medieval economy: this can also be said of peasant producers in eastern England before the Conquest. In the wake of the Viking invasions Scandinavian settlers from the second half of the ninth century entered a region that was already commercially active. Independent farmers raised sheep, possibly a newly introduced breed, on the Lincolnshire Wolds and marketed their wool. A network of Anglo‐Scandinavian shippers and traders, members of a merchant elite, controlled important places on river routes. That Lincolnshire was an area of light manorialization and many sokemen had an invigorating effect on its economy. Peasant producers had comparative freedom and by controlling markets and extracting cash from the inhabitants of their sokes Anglo‐Norman lords profited from an economy that had been invigorated by Scandinavian enterprise.     

Changes in Japanese household consumption and saving behavior before,during and after the Bubble era: empirical analysis using NSFIE micro-data sets

This paper seeks to clarify changes in the Japanese household behavior in the 1980s and 1990s through empirical investigation of available data on consumption and saving using the micro-data sets of the National Survey of Family Income and Expenditure. Our findings are as follows: First, household consumption was stable even during the Bubble period. Second, “bubbly” consumption in the Bubble era was due to consumption relying on corporate expense accounts. And, third, the saving behavior of households changed significantly after the Bubble burst and asset prices imploded. This is indicated by the change in the coefficient of assets in the saving function.     

Applying the Global Reporting Initiative (GRI) for public bodies in the South African context: the eThekwini experience

The eThekwini municipality's most recent State of the Environment (SOE) report was released in July 2005 and used the Global Reporting Initiative (GRI) sustainability reporting guidelines as a guiding framework. This method was novel in the development of a SOE report and many of the decisions reached were without precedent in the South African context. This paper relates the experiences of the team responsible for developing the report. It describes how the GRI was used and assesses the advantages and disadvantages of using the guidelines for public bodies in this context. It also explores the broader principles of corporate citizenship and the applicability of these to a public body.     

The economics of market coordination for the pre-Fed check-clearing system: A peek into the Bloomington (IL) node

On the basis of anecdotes centered on the alleged “circuitous routing of checks,” researchers focusing on the pre-Fed check-clearing system have usually argued that it was inefficient. In this paper we study a 1910 check remittance register from the State National Bank of Bloomington, Illinois—we dissect the way the bank forwarded checks to various destinations for clearing and collection. We find that the bank followed an orderly process of check remittance according to which checks tended to move in the “right direction.” This casts doubts on the alleged pervasiveness of cycling and circuitous routing of an extreme nature in the pre-Fed check-clearing process.