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Articles 1 - 15 of 15
Full-Text Articles in Economics
Caught In The Headlights: Revising The Road Kill Hypothesis Of Antebellum Illinois Bank Failures, Scott N. Clayman, Scott Deacle, Andrew J. Economopoulos
Caught In The Headlights: Revising The Road Kill Hypothesis Of Antebellum Illinois Bank Failures, Scott N. Clayman, Scott Deacle, Andrew J. Economopoulos
Business and Economics Faculty Publications
Illinois had a dismal free banking experience, with over 80% of its free banks failing by the start of the Civil War. Researchers agree that a dramatic change in bond prices was the catalyst, and some have shown that the riskiest banks, ex ante, were the most likely to fail. This study examines how Illinois free banks adjusted their portfolios in the face of increased political and financial risks prior to Abraham Lincoln’s election as president. Lincoln’s nomination in May 1860 and the Democratic Party schism in June 1860 raised the likelihood of secession and the potential for a significant …
Did Antebellum Illinois Free Banks Take Undue Risk With Their Bond Portfolios?: An Analysis Of Decision-Making Prior To The Civil War, Scott N. Clayman
Did Antebellum Illinois Free Banks Take Undue Risk With Their Bond Portfolios?: An Analysis Of Decision-Making Prior To The Civil War, Scott N. Clayman
Business and Economics Honors Papers
Free banks in Illinois could issue bank notes backed by state or U.S. bond collateral. A decline in bond prices as the Civil War approached resulted in banks being unable to redeem their noteholders in gold specie and subsequently resulted in bank failures. Previously economic historians believed that failures of free banks were due to wildcat banking rather than the portfolio allocation of free banks. Over time, other researchers have found that banks that took greater ex ante risk prior to the failure were more likely to fail. There were other price declines during the 1850s, in particular the Panic …
Political Barriers And The Transmission Of Monetary Policy Across States: The New England Antebellum Banking Market, Andrew J. Economopoulos
Political Barriers And The Transmission Of Monetary Policy Across States: The New England Antebellum Banking Market, Andrew J. Economopoulos
Business and Economics Faculty Publications
The New England antebellum banking market was examined to understand the interaction of political ideology and economic forces. With each state controlling bank entry, hence the money supply, political ideology could impede the supply of money within a state. However, the monetary forces from neighboring states may have influenced the degree to which parties held true to their political ideology. The results indicate that political ideology was an effective barrier in two of the six states, while three states were responsive to neighbor states' monetary policy regardless of political ideology. These states responded by creating new banks, raising existing capital …
Bank Entry During The Antebellum Period, Andrew J. Economopoulos, Heather M. O'Neill
Bank Entry During The Antebellum Period, Andrew J. Economopoulos, Heather M. O'Neill
Business and Economics Faculty Publications
A recent study by Kenneth Ng (1988) challenges the view that free banking laws lowered barriers to entry. The authors' study examines bank entry and capital formation in free and nonfree banking states during the free banking period. A competitive model is developed and used to test if barriers were lowered in free banking states. The evidence indicates that entry significantly increased after the enactment of the free banking laws and that entry policy in nonfree banking states appeared to have been 'liberalized' when the free banking laws were enacted in other states.
Free Bank Failures In New York And Wisconsin: A Portfolio Analysis, Andrew J. Economopoulos
Free Bank Failures In New York And Wisconsin: A Portfolio Analysis, Andrew J. Economopoulos
Business and Economics Faculty Publications
Rolnick and Weber found that a sharp decline in asset prices led to bank panics and, ultimately, bank failures during the free banking era. An examination of New York and Wisconsin free bank portfolios prior to a fall in asset prices indicates banks that weathered the turmoil held significantly different portfolios than closed banks. In general, solvent banks held more loans and specie, and issued more deposits and less bank notes than closed banks.
The New York Free Banking Era: Deregulation Or Reregulation?, Andrew J. Economopoulos
The New York Free Banking Era: Deregulation Or Reregulation?, Andrew J. Economopoulos
Business and Economics Faculty Publications
The deregulation of the banking market is a frequently debated policy issue. Proponents of deregulation claim that free market forces would improve market efficiency. The basis for their argument is grounded in the work and tenets of Adam Smith. Deregulation opponents claim that a bank market left unfettered would disrupt the financial market; bank mismanagement, failures, and panics would pervade the market and cause distrust of the banking system . Opponents of deregulation derive their beliefs from actual historical experiences rather than theory . Many opponents point to a period of American banking history, called the Free Banking Era (1838-1863), …
The Impact Of Reserve Requirements On Free Bank Failures, Andrew J. Economopoulos
The Impact Of Reserve Requirements On Free Bank Failures, Andrew J. Economopoulos
Business and Economics Faculty Publications
The Free Banking Era, noted for numerous bank failures and large creditor losses, has been traditionally viewed as the experiment in laissez-faire banking that failed. Current researchers have found evidence suggesting that bank failures and creditor losses were limited to selected states and have linked the cause of bank failures to periods of falling asset prices. Free banks were required to hold long-term assets as primary reserves for short-term liabilities. Current banking theory suggests that the maturity imbalance between assets and liabilities increases the free bank's exposure to interest rate risk. Some states imposed a secondary reserve, the specie reserve …
Japan's Economic Success Following Her World War Ii Defeat, Karen E. Davidock
Japan's Economic Success Following Her World War Ii Defeat, Karen E. Davidock
Business and Economics Honors Papers
This 78 page senior thesis examines the rate of Japan's economic growth since World War II.
The Development Of Transportation, With Special Emphasis Upon The Changing Importance Of The Railroad In The United States, Nancy E. Coleman
The Development Of Transportation, With Special Emphasis Upon The Changing Importance Of The Railroad In The United States, Nancy E. Coleman
Business and Economics Honors Papers
This 80 page thesis examines the impact of transportation on the economy of the United States, with special emphasis on railway development.
The Marshall Plan: A Critique Of The European Recovery Program, Louis D. Stefan
The Marshall Plan: A Critique Of The European Recovery Program, Louis D. Stefan
Business and Economics Honors Papers
This 48 page thesis examines the Marshall Plan for European recovery following World War II.
Brazil; Our Economic Partner: A Study Of Brazil And The Future Of Our Trade, Dorothy Kleppinger
Brazil; Our Economic Partner: A Study Of Brazil And The Future Of Our Trade, Dorothy Kleppinger
Business and Economics Honors Papers
This 62 page thesis examines Brazil's history, resources, industrialization and relations with the United States.
International Cartels, Jane Reifsnyder
International Cartels, Jane Reifsnyder
Business and Economics Honors Papers
This 37 page senior thesis examines government-controlled economic cartels from various countries, especially Germany, following the end of World War II.
The Iron Horse: A General Survey Of The Railroad Problem, Harry L. Showalter
The Iron Horse: A General Survey Of The Railroad Problem, Harry L. Showalter
Business and Economics Honors Papers
This 55 page thesis examines the history and economic impact of railroads in the United States as well as problems facing the industry.
The Federal Reserve System And Its Relation To Monetary Conditions In The United States: A Study Of The Banking System Of The United States, Gertrude F. Goldberg
The Federal Reserve System And Its Relation To Monetary Conditions In The United States: A Study Of The Banking System Of The United States, Gertrude F. Goldberg
Business and Economics Honors Papers
This 38 page thesis examines the history of the banking system in the United States and its problems.
A Problem In Railroad Consolidation, Stanley Omwake
A Problem In Railroad Consolidation, Stanley Omwake
Business and Economics Honors Papers
This 23 page thesis examines the problem of railroad consolidation in the United States and presents an outline of a proposed merger.