Skip to main content

Lund University Publications

LUND UNIVERSITY LIBRARIES

The Macroeconomic Effects of Banking Crises : Evidence from the United Kingdom, 1750-1938

Kenny, Seán LU ; Lennard, Jason LU and Turner, John D. (2017) In Lund Papers in Economic History: General Issues
Abstract
This paper investigates the macroeconomic effects of UK banking crises over the period 1750 to 1938. We construct a new annual banking crisis series using bank failure rate data, which suggests that the incidence of banking crises was every 32 years. Using our new series and a narrative approach to identify exogenous banking crises, we find that industrial production contracts by 8.2 per cent in the year following a crisis. This finding is robust to a battery of checks, including different VAR specifications, different thresholds for the crisis indicator, and the use of a capital-weighted bank failure rate.
Please use this url to cite or link to this publication:
author
; and
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
banking crisis, bank failures, narrative approach, macroeconomy, United Kingdom, E32, E44, G21, N13, N14, N23, N24
in
Lund Papers in Economic History: General Issues
issue
165
pages
47 pages
publisher
Department of Economic History, Lund University
ISSN
1101-346X
language
English
LU publication?
yes
id
f5c2b347-57a5-4721-90d0-6516ca0210fe
date added to LUP
2017-10-11 09:10:21
date last changed
2021-04-22 16:22:00
@misc{f5c2b347-57a5-4721-90d0-6516ca0210fe,
  abstract     = {{This paper investigates the macroeconomic effects of UK banking crises over the period 1750 to 1938. We construct a new annual banking crisis series using bank failure rate data, which suggests that the incidence of banking crises was every 32 years. Using our new series and a narrative approach to identify exogenous banking crises, we find that industrial production contracts by 8.2 per cent in the year following a crisis. This finding is robust to a battery of checks, including different VAR specifications, different thresholds for the crisis indicator, and the use of a capital-weighted bank failure rate.}},
  author       = {{Kenny, Seán and Lennard, Jason and Turner, John D.}},
  issn         = {{1101-346X}},
  keywords     = {{banking crisis; bank failures; narrative approach; macroeconomy; United Kingdom; E32; E44; G21; N13; N14; N23; N24}},
  language     = {{eng}},
  note         = {{Working Paper}},
  number       = {{165}},
  publisher    = {{Department of Economic History, Lund University}},
  series       = {{Lund Papers in Economic History: General Issues}},
  title        = {{The Macroeconomic Effects of Banking Crises : Evidence from the United Kingdom, 1750-1938}},
  url          = {{https://lup.lub.lu.se/search/files/33045677/LUP_165.pdf}},
  year         = {{2017}},
}