Working Paper
A spatial analysis of state banking regulation
Abstract: We use a spatial model to investigate a state?s choice of branch banking and interstate banking regimes as a function of the regime choices made by other states and other variables suggested in the literature. We extend the basic spatial econometric model by allowing spatial dependence to vary by geographic region. Our findings reveal that spatial effects have a large, statistically significant impact on state regulatory regime decisions. The importance of spatial correlation in the setting of state banking policies suggests the need to consider spatial effects in empirical models of state policies in general.
Keywords: Banks and banking; Bank supervision;
Status: Published in Papers in Regional Science, November 2005, 84(4), pp. 575-95
Access Documents
File(s): File format is application/pdf http://research.stlouisfed.org/wp/more/2003-044/
Bibliographic Information
Provider: Federal Reserve Bank of St. Louis
Part of Series: Working Papers
Publication Date: 2005
Number: 2003-044