Research


Job Market Paper:

“Did capital requirements promote bank stability in the early 20th century United States?” Link to paper

Short Abstract: The early 20th century United States provides an opportunity to determine whether imposing capital requirements on commercial banks promotes banking stability in the long run. The structure of the national banking system facilitates inference using a regression discontinuity design. The discontinuity arose because federal law raised capital requirements on banks operating in towns whose populations exceeded certain thresholds. These thresholds enable me to estimate the impact of capital requirements on the choices and outcomes of similar banks operating in similar towns under different regulatory regimes. I find that banks subject to higher capital requirements did hold more capital, but also increased deposits and lending proportionately, so that their leverage and risk of failure remained roughly unchanged. Ultimately, capital requirements did not result in lower suspension rates.

Working Papers:

“Bank Failures Triggered Business Failures in the United States: Causal Evidence from the Federal Reserve’s Formative Years” Joint with Gary Richardson Link to paper

“Business Failures by Industry in the United States, 1895 to 1939: A Statistical History.” Joint with Gary Richardson. NBER Working Paper Link to Paper

Works in Progress:

“Analyzing the Impact of Bank Failures on Wholesale activity during the Great Depression: A County-level study”

Publications:

Journal Articles, Peer-Reviewed

Capital Requirements and Financial Markets in California During the 20th Century, Journal of Business and Management, August 2016, Vol 22, No. 2, pp.83-93

Chapters in Books, Encyclopedias, Conference Proceedings, and other volumes

Banking Act of 1935 with Alejandro Komai, Daniel Park and Gary Richardson, Federal Reserve History website http://www.federalreservehistory.org/2015

Gold Reserve Act of 1934 with Alejandro Komai, Daniel Park, and Gary Richardson, Federal Reserve History website http://www.federalreservehistory.org/2015

Roosevelt’s Gold Program with Alejandro Komai, Daniel Park, and Gary Richardson,Federal Reserve History website http://www.federalreservehistory.org/2015

Stock Market Crash of 1929 with Alejandro Komai, Daniel Park and Gary Richardson,Federal Reserve History website http://www.federalreservehistory.org/2015

McFadden Act of 1927 with Alejandro Komai, Daniel Park and Gary Richardson, Federal Reserve History website http://www.federalreservehistory.org/2015

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