Using Stock Price Data to Measure the Effects of Regulation: The Interstate Commerce Act and the Railroad Industry
This article uses financial data to measure the effects of the passage of the Interstate Commerce Act of 1887 and subsequent legislative and judicial developments on firms in the railroad industry. The results indicate that the Interstate Commerce Act had a significant positive impact on railroad stock prices and that court decisions in the 1890s which severely restricted the powers of the Interstate Commerce Commission caused negative stock price reactions. These findings offer support for the revisionist view of regulatory history, according to which the railroads welcomed regulation as a means of facilitating the enforcement of cartel-like agreements.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 20 (1989)
Issue (Month): 2 (Summer)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|