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Is Deposit Insurance Necessary? A Historical Perspective

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Author Info
Calomiris, Charles W.

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Abstract

The motivation and structure of various banking insurance experiments in U.S. history are analyzed, along with their political alternative, branch banks. In both the antebellum period and in the 1920s, insurance systems that relied on self-regulation, made credible by mutual liability, were successful, while compulsory state systems were not. Branch banking increased stability and resiliency to shocks.

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File URL: http://journals.cambridge.org/abstract_S0022050700036433
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Publisher Info
Article provided by Cambridge University Press in its journal The Journal of Economic History.

Volume (Year): 50 (1990)
Issue (Month): 02 (June)
Pages: 283-295
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:cup:jechis:v:50:y:1990:i:02:p:283-295_03

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  1. Michael D. Bordo & Angela Redish & Hugh Rockoff, 1996. "A Comparison of the Stability and Efficiency of the Canadian and American Banking Systems 1870-1925," NBER Historical Working Papers 0067, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Juha-Pekka Niinimäki, 2003. "Fairly Priced Deposit Insurance under Adverse Selection," Finnish Economic Papers, Finnish Economic Association, vol. 16(1), pages 38-48, Spring. [Downloadable!]
  3. Linda M. Hooks & Kenneth J. Robinson, 1996. "Moral hazard and Texas banking in the 1920s," Financial Industry Studies Working Paper 96-1, Federal Reserve Bank of Dallas. [Downloadable!]
  4. Cull, Robert & Senbet, Lemma W. & Sorge, Marco, 2001. "Deposit insurance and financial development," Policy Research Working Paper Series 2682, The World Bank. [Downloadable!]
    Other versions:
  5. James R. Barth & R. Dan Brumbaugh Jr., . "Financing Prosperity in the Next Century, The Changing World of Banking: Setting the Regulatory Agenda," Economics Public Policy Brief Archive 8, Levy Economics Institute, The. [Downloadable!]
  6. Edward J. Kane, 2005. "Can the European Community Afford to Neglect the Need for More Accountable Safety-Net Management?," NBER Working Papers 11860, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Milhaupt, Curtis-J, 1999. "Japan's Experience with Deposit Insurance and Failing Banks: Implications for Financial Regulatory Design?," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 17(2), pages 21-46, August. [Downloadable!]
  8. Alan D. Morrison & Lucy White, 2004. "Is Deposit Insurance a Good Thing, and If So, Who Should Pay for It?," OFRC Working Papers Series 2004fe08, Oxford Financial Research Centre. [Downloadable!]
    Other versions:
  9. Cull, Robert, 1998. "How deposit insurance affects financial depth : a cross-country analysis," Policy Research Working Paper Series 1875, The World Bank. [Downloadable!]
  10. Charles W. Calomiris, 2007. "Bank Failures in Theory and History: The Great Depression and Other "Contagious" Events," NBER Working Papers 13597, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Asli Demirguc-Kunt & Edward J. Kane, 2002. "Deposit Insurance around the Globe: Where Does It Work?," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 175-195, Spring. [Downloadable!] (restricted)
    Other versions:
  12. Gary Gorton & Lixin Huang, 2002. "Bank Panics and the Endogeneity of Central Banking," Center for Financial Institutions Working Papers 02-29, Wharton School Center for Financial Institutions, University of Pennsylvania. [Downloadable!]
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  13. Mark Carlson & Kris James Mitchener, 2005. "Branch banking, bank competition, and financial stability," Finance and Economics Discussion Series 2005-20, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
  14. Larry D. Wall, 1997. "Taking note of the deposit insurance fund: a plan for the FDIC to issue capital notes," Economic Review, Federal Reserve Bank of Atlanta, issue Q 1, pages 14-30. [Downloadable!]
  15. Gary D. Libecap & Zeynep Kocabiyik Hansen, 2000. ""Rain Follows the Plow" and Dryfarming Doctrine: The Climate Information Problem and Homestead Failure in the Upper Great Plains, 1890-1925," NBER Historical Working Papers 0127, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  16. Mark Carlson & Kris James Mitchener, 2005. "Branch Banking, Bank Competition, and Financial Stability," NBER Working Papers 11291, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. William C. Gruben & Robert P. McComb, 1999. "Privatization, competition, and supercompetition in the Mexican commercial banking system," Center for Latin America Working Papers 0199, Federal Reserve Bank of Dallas. [Downloadable!]
  18. repec:fip:fedreq:y:1990:i:nov:p:3-17:n:v.76no.6 is not listed on IDEAS
  19. Thomas Mayer, . "Some Practical Aspects of Pluralism in Economics Truth is so important, however, that it behooves us not to jump to conclusions about it (Samuels, 1997)," Department of Economics 99-05, California Davis - Department of Economics. [Downloadable!]
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