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    This article has been cited by the following publications. This list is generated based on data provided by CrossRef.

    Perkins, Edwin J. 2014. In the eye of the storm: Isaac Seligman and the panic of 1873. Business History, Vol. 56, Issue. 7, p. 1129.

    Edvinsson, Rodney 2010. Major Recessions in Sweden 1850–2000: from pre-capitalist to modern types of crises. Scandinavian Journal of History, Vol. 35, Issue. 4, p. 403.


The Crisis of 1873: Perspectives from Multiple Asset Classes

  • SCOTT MIXON (a1)
  • DOI:
  • Published online: 01 September 2008

This article analyzes asset pricing behavior during the period leading up to the Crisis of 1873. Evidence is presented that equities, options, and bonds priced risks consistently, suggesting that investors were actively monitoring the risk of investing and were not caught up in an irrational, speculative mania. Implied probability density functions for stock returns suggest that option markets exhibited growing concern about substantial price declines prior to the crash. Concerns were concentrated on riskier, more leveraged firms. Deteriorating balance sheet fundamentals for the riskiest U.S. railroads set the stage for a market disruption in 1873 as information asymmetries worsened.

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The Journal of Economic History
  • ISSN: 0022-0507
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