Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/170720
Authors: 
Kenny, Seán
Lennard, Jason
Turner, John D.
Year of Publication: 
2017
Series/Report no.: 
QUCEH Working Paper Series 2017-09
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.
Subjects: 
banking crisis
bank failures
narrative approach
macroeconomy
United Kingdom
JEL: 
E32
E44
G21
N13
N14
N23
N24
Document Type: 
Working Paper

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