Time-varying price discovery in the eighteenth century: empirical evidence from the London and Amsterdam stock markets

This paper examines the time-varying nature of price discovery in eighteenth century cross-listed stocks. Specifically, we investigate how quickly news is reflected in prices for two of the great moneyed com- panies, the Bank of England and the East India Company, over the period 1723 to 1794. These British companies were cross-listed on the London and Amsterdam stock exchange and news between the capitals flowed mainly via the use of boats that transported mail. We examine in detail the historical context sur- rounding the defining events of the period, and use these as a guide to how the data should be analysed. We show that both trading venues contributed to price discovery, and although the London venue was more important for these stocks, its importance varies over time.

Science and Society: The Case of Acceptance of Newtonian Optics in the Eighteenth Century

The present paper presents a historical study on the acceptance of Newton's corpuscular theory of light in the early eighteenth century. Isaac Newton first published his famous book Opticks in 1704. After its publication, it became quite popular and was an almost mandatory presence in cultural life of Enlightenment societies. However, Newton's optics did not become popular only via his own words and hands, but also via public lectures and short books with scientific contents devoted to general public (including women) that emerged in the period as a sort of entertainment business. Lectures and writers stressed the inductivist approach to the study of nature and presented Newton's ideas about optics as they were consensual among natural philosophers in the period. The historical case study presented in this paper illustrates relevant aspects of nature of science, which can be explored by students of physics on undergraduate level or in physics teacher training programs.