Full Citation

Title: Regulatory Competition, State Banking, and Economic Growth in the National Banking Period

Citation Type: Miscellaneous

Publication Year: 2016

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: The dual banking system created an environment of regulatory competition between state and federal bank regulators that resulted in a number of free banking laws passed at the state level prior to 1900. I provide evidence that the entry of state banks under these laws contributed to the convergence in banking returns observed over this period by decreasing the prevalence of monopoly in banking markets. I also quantify the role of free banking laws in facilitating the expansion of state banking. Finally, I estimate the role of state banks in promoting economic growth in order to quantify the impact of free banking laws on real economic variables. The results indicate that the expansion of state banks, mainly due to the passage of state-level banking laws, significantly increased growth of agricultural output and physical capital prior to 1900

Url: http://www.christophercotter.com/uploads/6/0/6/5/60650001/chapter2.compressed.pdf

User Submitted?: No

Authors: Cotter, Christopher

Publisher: Oberlin College

Data Collections: IPUMS NHGIS

Topics: Other

Countries: