Market Contagion: Evidence from the Panics of 1854 and 1857

@article{Grda2000MarketCE,
  title={Market Contagion: Evidence from the Panics of 1854 and 1857},
  author={Cormac {\'O}. Gr{\'a}da and Morgan Kelly},
  journal={The American Economic Review},
  year={2000},
  volume={90},
  pages={1110-1124}
}
To test a model of contagion--where individuals hear some bad news and communicate it to their acquaintances, who then pass it on, leading to a market panic--requires a knowledge of the information networks of participants, something hitherto unavailable. For two panics in the 1850s this paper examines the behavior of Irish depositors in a New York bank. As recent immigrants, their social network was determined largely by their place of origin in Ireland, and where they lived in New York… 

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