The cost of political instability in Greece.

This paper examines the relationship between political instability, economic growth, and Greece's overall stock market index (ASE) returns from 1970 to 2018. The aim is to measure and quantify the impact of political instability on economic growth and the overall stock market returns. The analysis includes six different variables as proxies that quantify political instability. A new Socio-Political Instability index is constructed from these variables by employing the principal component analysis. The empirical part employs GARCH, GARCH-M, Granger causality tests and OLS regressions. The paper provides new insightful results and a new measure of political instability for Greece. [ABSTRACT FROM AUTHOR]