Plausibly Exogenous [1138] - Bank Failure (03/15/2023)
LHS Variable
Revenue and employment
RHS Variable
Banking failures
Source of Exogenous Variation
Mississippi being divided into two Federal Reserve districts, which followed different policies for liquidity provision, which then translated into variation in bank failures across the state (originally used in Richardson and Troost, 2009)
- Ziebarth (2013), “Identifying the effects of bank failures from a natural experiment in Mississippi during the Great Depression”