market volatility. To address endogeneity concerns, we propose various identification strategies, instrumenting uncertainty … with world shocks to volatility and with natural disasters, political coups and revolutions. Across all specifications, we …

market volatility. To identify causality, we exploit exogenous differential variation in countries' exposure to foreign … volatility shocks due to predetermined and time‐invariant bilateral characteristics. Across all specifications, we find that … stock market volatility has a positive and significant effect on the adoption of reforms. This result is robust to the …