USS ALASKA
Captain
- Joined
- Mar 16, 2016
DID RAILROADS MAKE ANTEBELLUM U.S. BANKS MORE SOUND?
Jeremy Atack
Matthew S. Jaremski
Peter L. Rousseau
Working Paper 20032 http://www.nber.org/papers/w20032
NATIONAL BUREAU OF ECONOMIC RESEARCH
1050 Massachusetts Avenue Cambridge, MA 02138 April 2014
ABSTRACT
We 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 “good” 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.
http://www.nber.org/papers/w20032.pdf
370
Cheers,
USS ALASKA
Jeremy Atack
Matthew S. Jaremski
Peter L. Rousseau
Working Paper 20032 http://www.nber.org/papers/w20032
NATIONAL BUREAU OF ECONOMIC RESEARCH
1050 Massachusetts Avenue Cambridge, MA 02138 April 2014
ABSTRACT
We 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 “good” 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.
http://www.nber.org/papers/w20032.pdf
370
Cheers,
USS ALASKA