The causes of free bank failures. A detailed examination

Arthur J. Rolnick, Warren E. Weber

Research output: Contribution to journalArticle

65 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)267-291
Number of pages25
JournalJournal of Monetary Economics
Volume14
Issue number3
DOIs
StatePublished - Nov 1984

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Asset prices
Bank failure
Auditors
Free banking
Banking

Cite this

The causes of free bank failures. A detailed examination. / Rolnick, Arthur J.; Weber, Warren E.

In: Journal of Monetary Economics, Vol. 14, No. 3, 11.1984, p. 267-291.

Research output: Contribution to journalArticle

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