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Intermediation and the provision of liquidity services during the South Sea Bubble

Author

Listed:
  • Andrew Mays

    (University of St Andrews)

  • Gary Shea

    (University of St Andrews)

Abstract

"A social network of stock trading is defined for the notorious South Sea Bubble. Complete market trade in East India Company and Bank of England shares is described in a flow network. Intermediation is treated as a form of network centrality, which can be analysed using measures of pass-through, inventories and immediacy. New features of the South Sea Bubble are documented: i) the crisis suffered by goldsmith bankers may have pre-dated the Bubble; ii) yet the depth and immediacy of intermediation was maintained throughout the Bubble; iii) a gradual trend towards dis-intermediation occurred after the Bubble and iv) a there was a switch from intermediation based upon brokerage to intermediation based upon dealership."

Suggested Citation

  • Andrew Mays & Gary Shea, 2012. "Intermediation and the provision of liquidity services during the South Sea Bubble," Working Papers 12011, Economic History Society.
    • Handle: RePEc:ehs:wpaper:12011
    as

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    File URL: http://www.ehs.org.uk/dotAsset/f038228f-952d-4a1c-abe8-b625f4d29e02.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    weighted multidigraph; flow network; financial intermediation; brokerage;
    All these keywords.

    JEL classification:

    • N00 - Economic History - - General - - - General

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