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Bank Entry during the Antebellum Period

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  • Economopoulos, Andrew
  • O'Neill, Heather

Abstract

A recent study by Kenneth Ng (1988) challenges the view the free banking laws lowered barriers to entry. The authors' study examines bank entry and capital formation in free and nonfree banking states during the free banking period. A competitive model is developed and used to test if barriers were lowered in free banking states. The evidence indicates that entry significantly increased after the enactment of the free banking laws and that entry policy in nonfree banking states appeared to have been 'liberalized' when the free banking laws were enacted in other states. Copyright 1995 by Ohio State University Press.

Suggested Citation

  • Economopoulos, Andrew & O'Neill, Heather, 1995. "Bank Entry during the Antebellum Period," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(4), pages 1071-1085, November.
  • Handle: RePEc:mcb:jmoncb:v:27:y:1995:i:4:p:1071-85
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    Cited by:

    1. Benjamin Chabot & Charles C. Moul, 2014. "Bank Panics, Government Guarantees, and the Long‐Run Size of the Financial Sector: Evidence from Free‐Banking America," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(5), pages 961-997, August.
    2. Stephen Haber & Enrico Perotti, 2008. "The Political Economy of Financial Systems," Tinbergen Institute Discussion Papers 08-045/2, Tinbergen Institute.
    3. Howard Bodenhorn, 2006. "Bank Chartering and Political Corruption in Antebellum New York. Free Banking as Reform," NBER Chapters, in: Corruption and Reform: Lessons from America's Economic History, pages 231-257, National Bureau of Economic Research, Inc.
    4. Malcolm Anderson, 1998. "Accounting History Publications, 1995/6," Accounting History Review, Taylor & Francis Journals, vol. 8(1), pages 105-124.
    5. Gerald P. Dwyer & Rik Hafer, 2001. "Bank failures in banking panics: Risky banks or road kill?," FRB Atlanta Working Paper 2001-13, Federal Reserve Bank of Atlanta.
    6. Zegarra, Luis Felipe, 2014. "Bank laws, economic growth and early banking in Latin America: 1840–1920," Explorations in Economic History, Elsevier, vol. 53(C), pages 101-119.

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