The availability/use of water resources and the relationship to the behavior of the capital market

Abstract This paper is intrigued by the following question: while the relationship between water resources and economic growth is well documented, what might have a stronger significant relationship - the availability of water resources or the actual use of these resources. An interesting thirty-year experiment regarding the See of Galilei in Israel indicates that the mere availability of water rather than the actual use is a key factor the affects the capital markets. This paper found a significant relationship between the moving averages, seasonally adjusted elevation levels of the sea and the capital market, while the actual use was hardly a significant factor. Given the low quantity of actual use of the water, the findings suggest that there is likely to be another variable that indirectly and differently affects the two variables.