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Does banking regulation cause counterproductive economic dynamics?

Author

Listed:
  • Henry Penikas

    (National Research University Higher School of Economics (Moscow, Russia). International Laboratory of Decision Choice and Analysis)

  • Travis Selmier

    (Indiana University, Department of Political Science (Bloomington, US))

Abstract

This essay aims at highlighting the linkage between current international banking regulation (namely, that produced by the Basel Committee on Banking Supervision) and economic activity, which is proxied by the S&P500 stock market index. It is revealed that the amount of regulatory documents published per year affects stock market performance, but only for the next two years. Discussion on the probable reasons for this is included

Suggested Citation

  • Henry Penikas & Travis Selmier, 2013. "Does banking regulation cause counterproductive economic dynamics?," HSE Working papers WP BRP 15/FE/2013, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:15/fe/2013
    as

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    File URL: http://www.hse.ru/data/2013/07/24/1288662337/15FE2013.pdf
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    References listed on IDEAS

    as
    1. Reinhart, Carmen M. & Rogoff, Kenneth S., 2013. "Banking crises: An equal opportunity menace," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4557-4573.
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    More about this item

    Keywords

    Basel Committee; Banking Regulation; Standard and Poor’s 500 Index; Granger Causality Test;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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