Banking Networks and Economic Growth: From Idiosyncratic Shocks to Aggregate Fluctuations
研究了美国银行放松管制后，地理多元化银行如何通过跨州资金再配置，将局部需求冲击分散化，从而降低各州经济周期同步性、平滑消费，并解释了“大缓和”现象。
This paper investigates the role of banking networks in the transmission of shocks across borders. Combining banking deregulation in the United States with state-level idiosyncratic demand shocks, we show that geographically diversified banks reallocate funds from economies experiencing negative shocks to unaffected regions. Our findings indicate that in the presence of idiosyncratic shocks, financial integration reduces business cycle comovement and synchronizes consumption patterns. Our findings contribute to explaining the Great Moderation and provide empirical support for theories that predict that banking integration facilitates the insurance of region-specific risk and the efficient allocation of resources as markets become more complete.