Policy externalities and banking integration

• 成果类型: Article
• 署名作者: Smolyansky, Michael
• 署名单位: Federal Reserve System - USA
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2018.11.001
• 发表日期: 2019
• 页码: 118-139
• 关键词: banks; Credit supply; Policy arbitrage; Small business lending; taxation

摘要

Can policies directed at the banking sector in one jurisdiction spill over and affect real economic activity elsewhere? To investigate this question, I exploit changes in tax rates on bank profits across US states. Banks respond by reallocating small business lending to otherwise unaffected states. Moreover, counties in non-tax-changing states that have more exposure to treated banks experience greater changes in lending, which in turn impacts local employment. The findings demonstrate that policies aimed at the banking sector in one jurisdiction can impose externalities on other regions. Critically, financial linkages between regions serve as the transmission channel for these policy externalities. (C) 2018 Elsevier B.V. All rights reserved.