A Tobit Analysis of Determinants of Geographic Differentials in the Commercial Bank Closing Rate in the United States

Cebula, Richard and Barth, James and Belton, Willie (1994): A Tobit Analysis of Determinants of Geographic Differentials in the Commercial Bank Closing Rate in the United States. Published in: Rivista Internazionale di Scienze Economiche e Commerciali , Vol. 42, No. 10-11 (25 November 1995): pp. 863-869.

Abstract

This study empirically identifies factors that influenced geographic differentials in the bank closing rate in the United States over the period 1982 through 1990. Given the presence of censored data, the model adopts the tobit estimation procedure. The bank closing rate in a state is found to be an increasing function of the average commercial bank cost of deposits, the percent of gross state product that derives from oil and natural gas extraction, net charge-offs as a percent of outstanding loans, and the presence of unit banking legislation in the state. The bank closing rate is also found to be a decreasing function the inflation rate of housing.

• Item Type: MPRA Paper
• Language: English
• Keywords: financial economics; bank closing rate; average cost of deposits; oil and natural gas extraction; net charge-offs
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation

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