The Macroeconomic Effects of Banking Crises: Evidence from the United Kingdom, 1750-1938

Seán Kenny (), Jason Lennard and John Turner ()
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Seán Kenny: Department of Economic History, Lund University, Postal: Department of Economic History, Lund University, Box 7083, S-220 07 Lund, Sweden

No 165, Lund Papers in Economic History from Lund University, Department of Economic History

Abstract: This paper investigates the macroeconomic effects of UK banking crises over the period 1750 to 1938. We construct a new annual banking crisis series using bank failure rate data, which suggests that the incidence of banking crises was every 32 years. Using our new series and a narrative approach to identify exogenous banking crises, we find that industrial production contracts by 8.2 per cent in the year following a crisis. This finding is robust to a battery of checks, including different VAR specifications, different thresholds for the crisis indicator, and the use of a capital-weighted bank failure rate.

Keywords: banking crisis; bank failures; narrative approach; macroeconomy; United Kingdom (search for similar items in EconPapers)
JEL-codes: E32 E44 G21 N13 N23 N24 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2017-10-11
New Economics Papers: this item is included in nep-ban, nep-cba, nep-cta, nep-his and nep-mac
References: View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: 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 (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)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:luekhi:0165

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