Did Inequality in Farm Sizes Lead to Suppression of Banking and Credit in the Late Nineteenth Century?

51 Pages Posted: 1 May 2017

See all articles by Matthew Jaremski

Matthew Jaremski

Utah State University - Huntsman School of Business; National Bureau of Economic Research (NBER)

Price V. Fishback

University of Arizona; National Bureau of Economic Research (NBER)

Date Written: April 2017

Abstract

This paper creates a new database that covers all banks in the United States in the census years between 1870 and 1900 to test the interaction between inequality and financial development when the banking system was starting over from scratch. A fixed-effects panel regression shows that the number of banks per thousand people in the South has a strong positive relationship with the size of farm operations. This suggests that large Southern farm operators welcomed new banks after the Civil War. When the analysis is extended into the 1900s, the relationship becomes more negative, as bankers may have tried to block entrants.

Suggested Citation

Jaremski, Matthew and Fishback, Price V., Did Inequality in Farm Sizes Lead to Suppression of Banking and Credit in the Late Nineteenth Century? (April 2017). NBER Working Paper No. w23348, Available at SSRN: https://ssrn.com/abstract=2961053

Matthew Jaremski (Contact Author)

Utah State University - Huntsman School of Business ( email )

3500 Old Main Hill
Logan, UT 84322-3500
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Price V. Fishback

University of Arizona ( email )

Tucson, AZ 85721-0108
United States
520-621-4421 (Phone)
520-621-8450 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
8
Abstract Views
233
PlumX Metrics