More Banks, Less Crime? The Real and Social Effects of Bank Competition
42 Pages Posted: 13 Jan 2005
Abstract
We examine the link between the competitiveness of the local banking market, urban development, and crime. We provide micro-level evidence that neighborhoods that experienced more bank mergers are subjected to future reduced loan provision, diminished local construction, lower prices and rents, an influx of poorer households, and higher crime in subsequent years. A one standard deviation increase in bank concentration raises homicide and burglary rates by approximately 1 percent. We show that these results are not likely due to reverse causation, and confirm the central findings using state branching deregulation to instrument for bank competition.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Relationship Lending and Lines of Credit in Small Firm Finance
By Allen N. Berger and Gregory F. Udell
-
Lines of Credit and Relationship Lending in Small Firm Finance
By Allen N. Berger and Gregory F. Udell
-
Information Production and Capital Allocation: Decentralized vs. Hierarchical Firms
-
Information Production and Capital Allocation: Decentralized vs. Hierarchical Firms
-
Does Distance Still Matter? The Information Revolution in Small Business Lending
-
Does Distance Still Matter? The Information Revolution in Small Business Lending
-
By Allen N. Berger, Philip E. Strahan, ...
-
By Allen N. Berger, Nathan Miller, ...
-
By Allen N. Berger, Nathan Miller, ...
-
By Allen N. Berger and Gregory F. Udell