NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Matthew S. Jaremski

Contact and additional information for this authorAll publicationsWorking Papers only

Working Papers and Chapters

April 2014Did Railroads Make Antebellum U.S. Banks More Sound?
with Jeremy Atack, Peter L. Rousseau: w20032
We investigate the relationships of bank failures and balance sheet conditions with measures of proximity to different forms of transportation in the United States over the period from 1830-1860. A series of hazard models and bank-level regressions indicate a systematic relationship between proximity to railroads (but not to other means of transportation) and “good” banking outcomes. Although railroads improved economic conditions along their routes, we offer evidence of another channel. Specifically, railroads facilitated better information flows about banks that led to modifications in bank asset composition consistent with reductions in the incidence of moral hazard.
March 2014Did Railroads Make Antebellum U.S. Banks More Sound?
with Jeremy Atack, Peter L. Rousseau
in Enterprising America: Business, Banks, and Credit Markets in Historical Perspective, William Collins and Robert Margo, editors
February 2013National Banking's Role in U.S. Industrialization, 1850-1900
w18789
The passage of the National Banking Acts stabilized the existing financial system and encouraged the entry of 729 banks between 1863 and 1866. The national banks not only attracted more deposits than previous state banks, but also concentrated in the area that would eventually become the Manufacturing Belt. Using a new bank census, the paper shows that these changes to the financial system were a major determinant of the geographic distribution of manufacturing. The sudden entry not only resulted in more manufacturing capital and output at the county-level, but also more steam engines and value added at the establishment-level.
April 2012Banks, Free Banks, and U.S. Economic Growth
with Peter L. Rousseau: w18021
The “Federalist financial revolution” may have jump-started the U.S. economy into modern growth, but the Free Banking System (1837-1862) did not play a direct role in sustaining it. Despite lowering entry barriers and extending banking into developing regions, we find in county-level data that free banks had little or no effect on growth. The result is not just a symptom of the era, as state-chartered banks seem to have strong and positive effects on manufacturing and urbanization.

Contact and additional information for this authorAll publicationsWorking Papers only

 
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