Abstract

http://ssrn.com/abstract=2042316
 
 

Citations (1)



 


 



Déjà Vu All Over Again: Agency, Uncertainty, Leverage and the Panic of 1857


Timothy J. Riddiough


University of Wisconsin - School of Business - Department of Real Estate and Urban Land Economics

Howard E. Thompson


University of Wisconsin - Madison - School of Business

April 18, 2012

HKIMR Working Paper No.10/2012

Abstract:     
The panic of 1857 is revisited with the benefit of hindsight provided by the panic of 2007-08, where a number of parallels are identified between the two panics. We present new evidence on causes of the failure of the financial institution that triggered the panic of 1857 and conduct a detailed analysis of railroad financial and accounting practices. New financial innovations are also studied — the railroad farm mortgage and farm mortgage-backed security — which had similarities to the modern sub-prime mortgage loan and MBS. Neglected risks and Knightian uncertainty appear to be fundamental reasons why investors continued to participate in a boom market that was also extremely fragile.

Number of Pages in PDF File: 56

working papers series


Download This Paper

Date posted: April 19, 2012  

Suggested Citation

Riddiough, Timothy J. and Thompson, Howard E., Déjà Vu All Over Again: Agency, Uncertainty, Leverage and the Panic of 1857 (April 18, 2012). HKIMR Working Paper No.10/2012. Available at SSRN: http://ssrn.com/abstract=2042316 or http://dx.doi.org/10.2139/ssrn.2042316

Contact Information

Timothy J. Riddiough (Contact Author)
University of Wisconsin - School of Business - Department of Real Estate and Urban Land Economics ( email )
School of Business
975 University Avenue
Madison, WI 53706
United States
608-262-3531 (Phone)
608-265-2738 (Fax)
Howard E. Thompson
University of Wisconsin - Madison - School of Business ( email )
975 University Avenue
Madison, WI 53706
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,419
Downloads: 225
Download Rank: 77,060
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo4 in 0.250 seconds