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Relating Leverage to Banking Market Structure: The Case of Railroads in Antebellum America

Klyn, Nathan A
http://rave.ohiolink.edu/etdc/view?acc_num=miami1406725853

Abstract Details

2014, Master of Arts, Miami University, Economics.
The free-banking era provides a unique time period to study bank market structure. Using data from historical maps and the Inter-University Consortium for Political and Social Research Censuses of the United States, I build upon previous research to investigate the relationship between railroads and antebellum banks from 1854-60. I first use simple ordinary least squares models to estimate the equilibrium relationships between railroads and balance sheet composition. I then estimate an endogenous market structure model that relates railroads to unobserved bank profitability through the number of observed banks. I find that railroads increased bank lending but reduced bank leverage (as related to banknotes), suggesting that railroads caused banks to shift their business emphases. My results further indicate that railroads had a net negative effect on banking profitability. I conclude that reduced bank leverage, as opposed to increased banking activity through lending, increased antebellum bank stability.
Charles Moul, Dr. (Advisor)
William Even, Dr. (Committee Member)
Gregory Niemesh, Dr. (Committee Member)
46 p.
Banking; Economic History; Economics
Endogenous Market Structure, Antebellum Banking, Economic History, Railroads

Recommended Citations

Citations

  • Klyn, N. A. (2014). Relating Leverage to Banking Market Structure: The Case of Railroads in Antebellum America [Master's thesis, Miami University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=miami1406725853

    APA Style (7th edition)

  • Klyn, Nathan. Relating Leverage to Banking Market Structure: The Case of Railroads in Antebellum America . 2014. Miami University, Master's thesis. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=miami1406725853.

    MLA Style (8th edition)

  • Klyn, Nathan. "Relating Leverage to Banking Market Structure: The Case of Railroads in Antebellum America ." Master's thesis, Miami University, 2014. http://rave.ohiolink.edu/etdc/view?acc_num=miami1406725853

    Chicago Manual of Style (17th edition)

miami1406725853
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This open access ETD is published by Miami University and OhioLINK.