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Title: Essays on Finance and Real Activity during the U.S. National Banking Period

Citation Type: Dissertation/Thesis

Publication Year: 2016

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Abstract: Waves of business failures are common features of economic downturns. Although these failures often reflect declines in real activity, they also have the potential to actively propagate real shocks. Bernanke (1983) proposes one channel through which firm defaults can amplify downturns, showing that defaults increased the cost of credit intermediation during the Great Depression. Following the Panic of 1873, business failures had the potential to affect real activity much more directly due to the undeveloped nature of bankruptcy procedures. At this time debt defaults of large corporate enterprises such as railroads were not governed by any bankruptcy laws. When creditors filed suit following a debt default, the judge would appoint a receiver charged with maintaining railroad operations while the railroad was reorganized. In theory, receivers should have been able to prevent any interruption in the firm's existing . . .

Url: https://etd.library.vanderbilt.edu//available/etd-07212016-165144/unrestricted/Cotter.pdf

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Authors: James Cotter, Christopher Andrew

Institution: Vanderbilt University

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Data Collections: IPUMS NHGIS

Topics: Labor Force and Occupational Structure, Other

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