IDEAS home Printed from https://ideas.repec.org/p/del/abcdef/2004-18.html
   My bibliography  Save this paper

The development of the Paris Bourse in the interwar period. What old and new stock indices tell us

Author

Listed:
  • Pierre-Cyrille Hautcoeur
  • Muriel Petit-Konczyk

Abstract

We present new indices of the Paris stock exchange during the interwar period. We first discuss the conditions for stock market indices to be useful instruments both of long term capital productivity measure and of portfolio performance, especially for international comparisons. We show that previous indices were built in order to assess early business cycles theories and are not fitted for today’s needs. Second, we build a new blue chip index, which we aim is more comparable to foreign (the Dow Jones in particular) and contemporary ones (the CAC 40), and helps understanding the limitations of previous indices. That new index is based on a new database on the French Bourse during the interwar period, which includes for every listed share monthly prices, earnings, splits and other capital operations, issues, and, most importantly, a measure of liquidity. The comparison with the previous index suggests that the performance of the French capital market during the interwar has been underrated. The comparison with the Dow Jones index shows that differences between the two markets are much smaller than previously thought, which could provide new impetus to the international theory of the great depression.

Suggested Citation

  • Pierre-Cyrille Hautcoeur & Muriel Petit-Konczyk, 2004. "The development of the Paris Bourse in the interwar period. What old and new stock indices tell us," DELTA Working Papers 2004-18, DELTA (Ecole normale supérieure).
  • Handle: RePEc:del:abcdef:2004-18
    as

    Download full text from publisher

    File URL: http://www.delta.ens.fr/abstracts/wp200418.pdf
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:del:abcdef:2004-18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/deltafr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.