A study co-authored by MIT Daron Acemoglu shows that demonstrations in Cairo’s Tahrir Square lowered the stock market valuations of politically connected firms - indicating how much people thought a full democratic revolution was possible.
Day after day in early 2011, massive crowds gathered in Cairo's Tahrir Square, calling for the ouster of Egyptian President Hosni Mubarak. Away from the square, the protests had another effect, as a study co-authored by an MIT professor shows. The demonstrations lowered the stock market valuations of politically connected firms - and showed how much people thought a full democratic revolution was possible. "When there's street mobilization, you expect that the future will be different," says MIT economist Daron Acemoglu , co-author of a paper detailing the results. The study opens a keyhole into the hopes and fears of Egyptians at a time of great political uncertainty. After weeks of protest, caused in part by perceptions of government corruption, Mubarak resigned in February 2011, replaced by an interim military government. The moment passed, however.
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