Article ID Journal Published Year Pages File Type
967122 Journal of Monetary Economics 2014 25 Pages PDF
Abstract
Using a newly discovered dataset of U.S. bank suspensions from 1921 to 1929, we discovered that banking panics were more common in the 1920s than had been believed. Besides identifying panics, we investigate their determinants, finding that local banking panics were more likely when fundamental economic conditions were generally weak and more likely in “overbanked” states; they were less likely in states with deposit insurance or states where a relatively large share of banks belonged to chain banking organizations.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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