Full Citation

Title: Three Essays on Private Firms Under Duress Considering Local Context: How Financial Institutions and Opioid Use Affect Firms

Citation Type: Dissertation/Thesis

Publication Year: 2022

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DOI: 10.17615/J58T-RX56

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Abstract: This three-paper dissertation improves our understanding of how financial institutions and substance use impact local economies. It expands our understanding of economic resilience, with a focus on community banks, minority-owned banks, and opioid use. This dissertation demonstrates the importance of community-oriented financial institutions, community banks and minority-owned banks, in strengthening economic resilience. It also demonstrates how substance use, often viewed through the lenses of public health, can impact long-term economic development. Paper one estimates the impact of the community-bank market share on the timing and duration of the GFC in the US. This paper empirically demonstrates counties with higher community bank market shares are less likely to experience recession conditions. Paper two estimates the impact of the minority-owned bank market share on the severity of the Global Financial Crisis and the COVID Recession in the US. This paper empirically demonstrates counties with higher minority-owned bank market shares experience lower minority employment growth declines through the Global Financial Crisis, though not through the COVID Recession. Small business lending drives this effect; minority-owned banks continued lending through the Global Financial Crisis at higher rates relative to non-minority-owned banks. Paper three estimates the effect of region-level opioid use rates on net firm entry in the US. In this paper, I instrument for opioid use rates using pill mills, thus providing causal evidence that as core-based statistical area-level opioid use rates increase, net firm entry declines. Differential impacts are observed across firm sizes and industries; small firms and service-oriented firm are most impacted. Recent recessions in the US demonstrate the importance of economic resilience. Using a diverse set of econometric methods, this dissertation demonstrates the role of community-oriented financial institutions in strengthening economic resilience, as well as how public health conditions impact economic development.

Url: https://cdr.lib.unc.edu/concern/dissertations/6108vm81m?locale=en

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Authors: Langford, W Scott

Institution: University of North Carolina

Department: Public Policy

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Pages: 1-199

Data Collections: IPUMS USA - Ancestry Full Count Data

Topics: Health, Labor Force and Occupational Structure

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