Investing in early public works

Financial risks and returns in English and Welsh turnpikes, 1820-82

Datos Bibliográficos

ID4353733
AutoresDan Bogart (0000-0002-0011-3190, University of California, Irvine, autor de correspondencia)
Año2019
Volumen72
Número3
Páginas848-868
Fecha de publicación2019-08-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic History Review (JOURNAL)
Identificadores de la revistaISSN: 0013-0117 • E-ISSN: 1468-0289
EditorialWiley (PUBLISHER • GB)
DOI10.1111/ehr.12698
OpenAlexW2794636047
IdiomaEN
Citas recibidas2
Referencias citadas34

Private and local investors provided much of the capital to improve England's infrastructure during its industrialization. This study investigates the financial returns to investors in turnpike road trusts. It draws on parliamentary reports which provide comprehensive data on finances, including payments to bondholders. One key finding is that turnpike trusts paid their bondholders a return above the yield on government bonds before 1850. Afterwards turnpike interest payments declined, yet they still yielded competitive returns. Another key finding is that the risks were modest. Returns to holding individual turnpike bonds varied, with most paying 4 to 5 per cent and some paying zero. The latter were not the majority and in many cases interest payments resumed within a few years. Diversified portfolios of turnpike bonds enjoyed lower risks, and outperformed portfolios with railway and canal securities traded on the London exchange before 1850. Overall, the results contribute to a better understanding of the risks and returns associated with investing in early public works

Bond · Business · Capital (architecture) · Capital market · Economics · Financial market · Government bond · Interest rate · Payment · Rate of return · Welsh · Yield (engineering) · Finance · Historical Economic and Social Studies · Housing Market and Economics