Gai, PrasannaCameron, Gavin FTan, Kang Yong2015-12-070013-0249http://hdl.handle.net/1885/22933This paper reassesses the determinants of sovereign bond yields during the classical gold standard period (1872-1913) using the pooled mean group methodology. We find that, rather than lowering risk premia directly, membership of the gold standard hastened the convergence of sovereign bond spreads to their long-run equilibrium levels. Our results also suggest that investors looked beyond the gold standard to country-specific fundamental factors when pricing and differentiating sovereign risk.Keywords: assessment method; econometrics; estimation method; financial system; investment; macroeconomics200910.1111/j.1475-4932.2009.00569.x2016-02-24