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Bank Rates of Return and Entry Restrictions, 1869–1914

Published online by Cambridge University Press:  03 March 2009

John J. Binder  and
David T. Brown
John J. Binder
Affiliation:
Assistant Professor of Finance, University of Illinois-Chicago, Chicago, IL60680.
David T. Brown
Affiliation:
Assistant Professor of Finance, University of Florida, Gainesville, FL 32611.
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Abstract

This article uses a variety of data in a simple regression framework to test various hypotheses about the regional differences in U.S. bank rates of return existing before 1915. We find that the observed pattern in the return differences is a function of the measures of bank returns used in previous studies, regional differences in economic conditions, restrictions on interstate branch banking, and private bank minimum capital requirements. These results are inconsistent with most of the bank monopoly-power hypotheses in the literature.

Type
Articles
Information
The Journal of Economic History , Volume 51 , Issue 1 , March 1991 , pp. 47 - 66
Copyright
Copyright © The Economic History Association 1991

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