Financial Market Discipline in Early-Twentieth-Century Mexico

Elisabeth Huybens, Astrid Luce Jordan and Sangeeta Pratap

The Journal of Economic History, 2005, vol. 65, issue 3, 757-778

Abstract: We test for the presence of market discipline in the banking sector in early-twentieth-century Mexico. Using financial data from note-issuing banks between 1900 and 1910, we examine whether bank fundamentals influenced the patterns of withdrawals and of note issue. We show that fundamentals were a strong determinant of bank withdrawals and note issue, indicating that market discipline was an important feature of the banking system in this period. This result crucially depends on correcting for selection bias generated by the exit of several banks in the 1907 crisis.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:jechis:v:65:y:2005:i:03:p:757-778_00

Access Statistics for this article

More articles in The Journal of Economic History from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().