Something Banks Are Good For

http://www.futureofcapitalism.com/2010/05/something-banks-are-good-for

Amid all the vilification of banks comes a reminder that they play an important role, at least if you like cities. Clemson University's Howard Bodenhorn and David Cuberes have a new working paper posted at the National Bureau of Economic Research headlined, "Financial development and City Growth: Evidence From Northeastern American Cities, 1790-1870." From the abstract: "Our estimates suggest that the presence of a bank at a given location increases its subsequent growth by one to two percentage points per year. Because urban growth was correlated with economic development in the nineteenth-century US, we believe our results provide further support for the finance-growth nexus."

by Editor  |  May 17, 2010 at 8:48 am Related Topics:  Banking receive the latest by email: subscribe to the free futureofcapitalism.com mailing list