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The formation of the efficient market in Tokugawa Japan

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Author Info
Yasuo Takatsuki () (Graduate School of Economics, Tokyo University)
Abstract

The first modern futures market is said to date back to the Chicago Board of Trade established in 1848. However, there existed an older precedent; the Dojima Rice Market established in 1730 in Osaka. The past literature on Dojima has made it clear that Dojima had well-established trading systems. However, a important question remains unanswered: whether the first well-established futures market efficient or not? This paper first constructs the daily price index from the original historical document, and applies the test of unbiasedness hypothesis and the classic measure of market efficiency; "weak-form efficiency" to Dojima Rice Market, and shows that there existed these types of efficiency.

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Publisher Info
Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 06-28-Rev.

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Length: 20 pages
Date of creation: Nov 2006
Date of revision: May 2007
Handle: RePEc:osk:wpaper:0628r

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Web page: http://www.econ.osaka-u.ac.jp/
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Related research
Keywords: Tokugawa Period Japan Futures Market Informational Efficiency

Find related papers by JEL classification:
G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
N25 - Economic History - - Financial Markets and Institutions - - - Asia including Middle East

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This page was last updated on 2008-11-12.


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