Free Banking Laws and Barriers to Entry in Banking, 1838-1860

Bibliographic Data

ID5083682
AuthorsKenneth Ng (0000-0001-7280-8445, California State University, Northridge, corresponding author)
Year1988
Volume48
Issue4
Pages877-889
Publication date1988-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Journal of Economic History (JOURNAL)
Journal identifiersISSN: 0022-0507 • E-ISSN: 1471-6372
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0022050700006653
OpenAlexW2166359788
LanguageEN
Citations received7
References cited6

The thesis that free banking laws lowered barriers to entry in the U.S. banking industry is tested by examining entry of firms and output of banking services before and after the institution of free banking. The output of banking services and the number of banks remained the same or declined after the institution of free banking, in all states with viable free banking laws except New York. In light of this evidence, the belief that free banking in the antebellum United States increased competition and efficiency of the banking industry by lowering barriers to entry must be reconsidered

Banking industry · Barriers to entry · Business · Commercial banking · Competition (biology) · Financial system · Free entry · Industrial organization · Institution · Market structure · Political science · Retail banking · Historical Economic and Social Studies · Law

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