The macroeconomic effects of banking crises: Evidence from the United Kingdom, 1750–1938

Seán Kenny, Jason Lennard and John Turner ()

Explorations in Economic History, 2021, vol. 79, issue C

Abstract: This paper analyses the macroeconomic effects of banking crises in the United Kingdom between 1750 and 1938. We construct a new annual chronology of banking crises, which we define as episodes of runs and panics combined with significant, geographically-dispersed failures and suspensions. Using a vector autoregression, we find that banking crises are associated with short, sharp and significant drops in economic growth. Using the narrative record to identify plausibly exogenous variation, we show that this finding is robust to potential endogeneity.

Keywords: Banking crisis; Macroeconomy; Narrative identification; Vector autoregression; United Kingdom (search for similar items in EconPapers)
JEL-codes: E32 E44 G21 N13 N14 N23 N24 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014498320300528
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The macroeconomic effects of banking crises: evidence from the United Kingdom, 1750–1938 (2021)
Working Paper: The Macroeconomic Effects of Banking Crises: Evidence from the United Kingdom, 1750-1938 (2017)
Working Paper: The Macroeconomic Effects of Banking Crises: Evidence from the United Kingdom, 1750-1938 (2017)
Working Paper: The macroeconomic effects of banking crises: Evidence from the United Kingdom, 1750-1938 (2017)
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:eee:exehis:v:79:y:2021:i:c:s0014498320300528

DOI: 10.1016/j.eeh.2020.101357

Access Statistics for this article

Explorations in Economic History is currently edited by R.H. Steckel

More articles in Explorations in Economic History from Elsevier
Bibliographic data for series maintained by Catherine Liu ().