The Macroeconomic Effects of Banking Crises: Evidence from the United Kingdom, 1750–1938

Research output: Contribution to journalArticle


This paper analyses the macroeconomic effects of banking crises in the United Kingdom between 1750 and 1938. We construct a new annual chronology of banking crises, which we define as episodes of runs and panics combined with significant, geographically-dispersed failures and suspensions. Using a vector autoregression, we find that banking crises are associated with short, sharp and significant drops in economic growth. Using the narrative record to identify plausibly exogenous variation, we show that this finding is robust to potential endogeneity.


External organisations
  • London School of Economics and Political Science
  • Queen's University Belfast
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economic History


  • banking crisis, macroeconomy, narrative identification, vector autoregression, United Kingdom
Original languageEnglish
Number of pages18
JournalExplorations in Economic History
Issue numberJanuary
Early online date2020
Publication statusPublished - 2021 Jan 1
Publication categoryResearch