Did Railroads Make Antebellum U.S. Banks More Sound?
In: Enterprising America: Businesses, Banks, and Credit Markets in Historical Perspective
AbstractWe investigate the relationships of bank failures and balance sheet conditions with measures of proximity to different forms of transportation in the United States over the period from 1830-1860. A series of hazard models and bank-level regressions indicate a systematic relationship between proximity to railroads (but not to other means of transportation) and âgoodâ banking outcomes. Although railroads improved economic conditions along their routes, we offer evidence of another channel. Specifically, railroads facilitated better information flows about banks that led to modifications in bank asset composition consistent with reductions in the incidence of moral hazard.
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Other versions of this item:
- Jeremy Atack & Matthew S. Jaremski & Peter L. Rousseau, 2014. "Did Railroads Make Antebellum U.S. Banks More Sound?," NBER Working Papers 20032, National Bureau of Economic Research, Inc.
- N21 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: Pre-1913
- N71 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: Pre-1913
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Technology and Financial Inclusion in North America
by bbatiz in NEP-HIS blog on 2014-07-29 13:53:34
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