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

Jason Lennard, Seán Kenny and John Turner ()

No 478, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

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 30 or so 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 N14 N23 N24 (search for similar items in EconPapers)
Date: 2017-08
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:nsr:niesrd:478

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