Carlson et al. (2022) study the effects of banking competition on economic growth and financial stability in the US National Banking Era. Using a discontinuity in bank capital requirements, they find that lower entry barriers increase lending and growth, but also risk-taking. We reproduce and verify the original results, and perform various robustness checks. We show that the results are mostly stable, but sometimes sensitive to the sample selection procedure and the included control variables.
|Submitted - 31 Jan 2024