Working Paper2017

From financial history to history & finance

Authors: D'Acunto

Abstract

Financial history studies facts and institutions of the past. Such facts and institutions are interesting subjects in themselves, or they can help us interpret the present through analogy. History & Finance reverses the role of history in finance research: it exploits natural experiments of the past as a means to directly explaining current financial outcomes through the long-run persistence of economic and social phenomena. I first define the History & Finance approach and its relationship to Economic and Financial history. Then, I survey the work based on History & Finance across the subfields of finance. I discuss the challenges raised by History & Finance, and how researchers have thus far tackled them. Finally, I comment on the avenues for future research that History & Finance opens to finance scholars and economic historians alike.

Keywords

Historical factsinstitutional backgroundsnatural experimentshistory & finance

Tags of Social Finance

#Asset Pricing & Trading Volume and Market Efficiency#Evolutionary Finance#Financing- and Investment Decisions (Individual)#Manager & Firm Behavior