TY  - JOUR
AU  - Chung,Ching-Yi
AU  - Richardson,Gary
TI  - Deposit Insurance and the Composition of Bank Suspensions in Developing Economies: Lessons from the State Deposit Insurance Experiments of the 1920S
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12594
PY  - 2006
Y2  - October 2006
UR  - http://www.nber.org/papers/w12594
L1  - http://www.nber.org/papers/w12594.pdf
N1  - Author contact info:
Ching-Yi Chung
3151 Social Science Plaza
Department of Economics University of California
Irvine, CA 92612-5100
E-Mail: chingyic@uci.edu

Gary Richardson
Department of Economics
University of California, Irvine
3155 Social Sciences Plaza
Irvine, CA 92697-5100
Tel: 949/824-3189
Fax: 949/824-2182
E-Mail: garyr@uci.edu
AB  - Eight states established deposit insurance systems between 1908 and 1917. All abandoned the systems between 1921 and 1930. Scholars debate the costs and benefits of these policy experiments. New data drawn from the archives of the Federal Reserve Board of Governors demonstrate that deposit insurance influenced the composition of bank suspensions in these states. In typical years, suspensions due to runs fell. Suspensions due to mismanagement rose. During the penultimate year of each system, the bank failure rate rose to an unsustainable height and the system ceased operations.
ER  -