TY - JOUR
T1 - The causes of free bank failures. A detailed examination
AU - Rolnick, Arthur J.
AU - Weber, Warren E.
PY - 1984/11
Y1 - 1984/11
N2 - In this paper we propose and test a new explanation of bank behavior during the Free Banking Era, 1837-1863. Arguing against the conventional view that free bank failures were due to wildcat banking, we claim they were caused by falling asset prices. Confronting both explanations with our new and detailed data set developed from state auditor reports, we find that the falling asset price explanation of free bank failures explains far more failures than does the wildcatting hypothesis.
AB - In this paper we propose and test a new explanation of bank behavior during the Free Banking Era, 1837-1863. Arguing against the conventional view that free bank failures were due to wildcat banking, we claim they were caused by falling asset prices. Confronting both explanations with our new and detailed data set developed from state auditor reports, we find that the falling asset price explanation of free bank failures explains far more failures than does the wildcatting hypothesis.
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U2 - 10.1016/0304-3932(84)90044-8
DO - 10.1016/0304-3932(84)90044-8
M3 - Article
AN - SCOPUS:48549109198
SN - 0304-3932
VL - 14
SP - 267
EP - 291
JO - Journal of Monetary Economics
JF - Journal of Monetary Economics
IS - 3
ER -
