The Canton of Berne as an Investor on the London Capital Market in the 18th Century

This paper is a case study about investor behaviour of the government of Berne on capital markets in the 18th century, focussing mainly on London. Economic theory about principal-agent problems and portfolio administration will be used to analyse quantitative and qualitative data from government accounts and reports, as well as from the contemporary press. On the basis of this material, information about the decision-making process by one of the biggest investors in the London capital market of the 18th century can be analysed.[...]