Abstract

http://ssrn.com/abstract=952787
 
 

References (51)



 
 

Citations (25)



 


 



US Banking Deregulation, Small Businesses and Interstate Insurance of Personal Income


Yuliya S. Demyanyk


Federal Reserve Bank of Cleveland

Charlotte Ostergaard


BI Norwegian Business School

Bent E. Sorensen


University of Houston - Department of Economics; Centre for Economic Policy Research (CEPR)

October 2006

CEPR Discussion Paper No. 5863

Abstract:     
We estimate the effects of deregulation of U.S. banking restrictions on the amount of interstate personal income insurance during the period 1970-2001. Interstate income insurance occurs when personal income reacts less than one-to-one to state-specific shocks to output. We find that income insurance improved after banking deregulation, and that this effect is larger in states where small businesses are more important. We further show that the impact of deregulation is stronger for proprietors' income than other components of personal income. Our explanation of this result centers on the role of banks as a prime source of small business finance and on the close intertwining of the personal and business finances of small business owners. Our analysis casts light on the real effects of bank deregulation, on the risk sharing function of banks, and on the integration of bank markets.

Number of Pages in PDF File: 57

Keywords: Financial deregulation, integration of bank markets, interstate risk sharing, small business finance

JEL Classification: G21, G28

working papers series





Date posted: December 20, 2006  

Suggested Citation

Demyanyk, Yuliya S. and Ostergaard, Charlotte and Sorensen, Bent E., US Banking Deregulation, Small Businesses and Interstate Insurance of Personal Income (October 2006). CEPR Discussion Paper No. 5863. Available at SSRN: http://ssrn.com/abstract=952787

Contact Information

Yuliya Demyanyk
Federal Reserve Bank of Cleveland ( email )
Research Department
East 6th & Superior
Cleveland, OH 44101-1387
United States
HOME PAGE: http://www.clevelandfed.org/Research/Economists/Demyanyk
Charlotte Ostergaard
BI Norwegian Business School ( email )
Nydalsveien 37
Oslo, 0442
Norway
+4746410520 (Phone)
Bent E. Sorensen (Contact Author)
University of Houston - Department of Economics ( email )
204 McElhinney Hall
Houston, TX 77204-5882
United States
713-743-3841 (Phone)
713-743-3798 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Feedback to SSRN


Paper statistics
Abstract Views: 573
Downloads: 16
References:  51
Citations:  25

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.562 seconds