The Macroeconomic Effects of Banking Crises: Evidence from the United Kingdom, 1750–1938
(2021) In Explorations in Economic History 79(January).- Abstract
- This paper analyses the macroeconomic effects of banking crises in the United Kingdom between 1750 and 1938. We construct a new annual chronology of banking crises, which we define as episodes of runs and panics combined with significant, geographically-dispersed failures and suspensions. Using a vector autoregression, we find that banking crises are associated with short, sharp and significant drops in economic growth. Using the narrative record to identify plausibly exogenous variation, we show that this finding is robust to potential endogeneity.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/7f13c381-ed4f-45c5-a92a-141094f38483
- author
- Kenny, Sean LU ; Lennard, Jason LU and Turner, John
- organization
- publishing date
- 2021-01-01
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- banking crisis, macroeconomy, narrative identification, vector autoregression, United Kingdom
- in
- Explorations in Economic History
- volume
- 79
- issue
- January
- pages
- 18 pages
- publisher
- Elsevier
- external identifiers
-
- scopus:85090313498
- ISSN
- 0014-4983
- DOI
- 10.1016/j.eeh.2020.101357
- language
- English
- LU publication?
- yes
- id
- 7f13c381-ed4f-45c5-a92a-141094f38483
- date added to LUP
- 2020-08-21 10:18:21
- date last changed
- 2022-04-19 00:18:23
@article{7f13c381-ed4f-45c5-a92a-141094f38483, abstract = {{This paper analyses the macroeconomic effects of banking crises in the United Kingdom between 1750 and 1938. We construct a new annual chronology of banking crises, which we define as episodes of runs and panics combined with significant, geographically-dispersed failures and suspensions. Using a vector autoregression, we find that banking crises are associated with short, sharp and significant drops in economic growth. Using the narrative record to identify plausibly exogenous variation, we show that this finding is robust to potential endogeneity.}}, author = {{Kenny, Sean and Lennard, Jason and Turner, John}}, issn = {{0014-4983}}, keywords = {{banking crisis; macroeconomy; narrative identification; vector autoregression; United Kingdom}}, language = {{eng}}, month = {{01}}, number = {{January}}, publisher = {{Elsevier}}, series = {{Explorations in Economic History}}, title = {{The Macroeconomic Effects of Banking Crises: Evidence from the United Kingdom, 1750–1938}}, url = {{http://dx.doi.org/10.1016/j.eeh.2020.101357}}, doi = {{10.1016/j.eeh.2020.101357}}, volume = {{79}}, year = {{2021}}, }