IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/51513.html
   My bibliography  Save this paper

A Tobit Analysis of Determinants of Geographic Differentials in the Commercial Bank Closing Rate in the United States

Author

Listed:
  • Cebula, Richard
  • Barth, James
  • Belton, Willie

Abstract

This study empirically identifies factors that influenced geographic differentials in the bank closing rate in the United States over the period 1982 through 1990. Given the presence of censored data, the model adopts the tobit estimation procedure. The bank closing rate in a state is found to be an increasing function of the average commercial bank cost of deposits, the percent of gross state product that derives from oil and natural gas extraction, net charge-offs as a percent of outstanding loans, and the presence of unit banking legislation in the state. The bank closing rate is also found to be a decreasing function the inflation rate of housing.

Suggested Citation

  • Cebula, Richard & Barth, James & Belton, Willie, 1994. "A Tobit Analysis of Determinants of Geographic Differentials in the Commercial Bank Closing Rate in the United States," MPRA Paper 51513, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51513
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/51513/1/MPRA_paper_51513.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cebula, Richard, 1992. "The Impact of Federal Deposit Insurance on Savings and Loan Failures," MPRA Paper 51540, University Library of Munich, Germany.
    2. James R. Barth, 1991. "The Great Savings and Loan Debacle," Books, American Enterprise Institute, number 918256, September.
    3. Jaffee, Dwight M, 1989. "Symposium on Federal Deposit Insurance for S&L Institutions," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 3-9, Fall.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Richard J. Cebula, 1996. "Geographic Differentials In The Rate Of Return On Savings And Loan Assets," The Review of Regional Studies, Southern Regional Science Association, vol. 26(1), pages 41-53, Summer.
    2. Cebula, Richard, 1992. "The Impact of Federal Deposit Insurance on Savings and Loan Failures," MPRA Paper 51540, University Library of Munich, Germany.
    3. Richard J. Cebula & Willie J. Belton, 1996. "An Empirical Analysis Of Determinants Of Geographic Differentials In The Bank Closing Rate In The United States, 1989-1994, Using The Heteroskedastic-Tobit Model," The Review of Regional Studies, Southern Regional Science Association, vol. 26(3), pages 341-350, Winter.
    4. Richard Cebula, 1999. "New evidence on determinants of bank failures in the US," Applied Economics Letters, Taylor & Francis Journals, vol. 6(1), pages 45-47.
    5. William Gissy, 2000. "Regulatory forbearance: A reconsideration," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(4), pages 722-729, November.
    6. George J. Benston & George G. Kaufman, 1997. "FDICIA after five years: a review and evaluation," Working Paper Series, Issues in Financial Regulation WP-97-01, Federal Reserve Bank of Chicago.
    7. Ira Saltz, 1997. "Federal deposit insurance coverage and bank failures: A cointegration analysis with semi-annual data, 1965–91," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 21(3), pages 3-9, September.
    8. Ira Saltz, 1997. "FDIC Coverage on bank failures: Cointegration analysis using annual data, 1942–91," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(1), pages 71-80, February.
    9. George J. Benston & George G. Kaufman, 1997. "FDICIA after Five Years," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 139-158, Summer.
    10. Donald Hester, 1992. "Financial institutions and the collapse of real estate markets," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 36, pages 114-150.
    11. Guo, Lin, 1999. "When and why did FSLIC resolve insolvent thrifts?," Journal of Banking & Finance, Elsevier, vol. 23(6), pages 955-990, June.
    12. John B. Shoven & Scott B. Smart & Joel Waldfogel, 1992. "Real Interest Rates and the Savings and Loan Crisis: The Moral Hazard Premium," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 155-167, Winter.
    13. Hesna Genay, 1998. "Assessing the condition of Japanese banks: how informative are accounting earnings?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 22(Q IV), pages 12-34.
    14. Randall W. Bennett & Christine Loucks, 1996. "Politics And Length Of Time To Bank Failure: 1986–1990," Contemporary Economic Policy, Western Economic Association International, vol. 14(4), pages 29-41, October.
    15. Richard J. Cebula, 2014. "The underground economy in the U.S.A.: preliminary new evidence on the impact of income tax rates (and other factors) on aggregate tax evasion 1975-2008," PSL Quarterly Review, Economia civile, vol. 67(271), pages 451-481.
    16. Barth, James R. & Prabha, Apanard & Swagel, Phillip, 2012. "Just How Big Is the Too Big to Fail Problem?," Working Papers 12-06, University of Pennsylvania, Wharton School, Weiss Center.
    17. Gary Gorton & Lixin Huang, 2004. "Liquidity, Efficiency, and Bank Bailouts," American Economic Review, American Economic Association, vol. 94(3), pages 455-483, June.
    18. Gorton, Gary & Winton, Andrew, 2003. "Financial intermediation," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, edition 1, volume 1, chapter 8, pages 431-552, Elsevier.
    19. John C. Weicher, 1994. "The new structure of the housing finance system," Review, Federal Reserve Bank of St. Louis, issue Jul, pages 47-65.
    20. Paul Hamalainen & Maximilian Hall & Barry Howcroft, 2005. "THIS ARTICLE HAS BEEN RETRACTED A Framework for Market Discipline in Bank Regulatory Design," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(1‐2), pages 183-209, January.

    More about this item

    Keywords

    financial economics; bank closing rate; average cost of deposits; oil and natural gas extraction; net charge-offs;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:51513. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.