Are differences in local banking development long lasting? Do they affect economic performance? I answer these questions by relying on a historical development that occurred in Italian cities during the Renaissance. A change in Catholic doctrine led to the development of modern banks in cities hosting Jewish communities. Using Jewish demography in 1500 as an instrument, I provide evidence of extraordinary persistence in the level of banking development across Italian cities and substantial effects of local banks on per capita income. Additional Firm-Level analyses suggest that banks exert large effects on aggregate productivity by reallocating resources toward more efficient firms.

Banks and development: Jewish communities in the italian renaissance and current economic performance / Pascali, Luigi. - In: THE REVIEW OF ECONOMICS AND STATISTICS. - ISSN 0034-6535. - 98:1(2016), pp. 140-158. [10.1162/REST_a_00481]

Banks and development: Jewish communities in the italian renaissance and current economic performance

Pascali L.
2016

Abstract

Are differences in local banking development long lasting? Do they affect economic performance? I answer these questions by relying on a historical development that occurred in Italian cities during the Renaissance. A change in Catholic doctrine led to the development of modern banks in cities hosting Jewish communities. Using Jewish demography in 1500 as an instrument, I provide evidence of extraordinary persistence in the level of banking development across Italian cities and substantial effects of local banks on per capita income. Additional Firm-Level analyses suggest that banks exert large effects on aggregate productivity by reallocating resources toward more efficient firms.
2016
Banks and development: Jewish communities in the italian renaissance and current economic performance / Pascali, Luigi. - In: THE REVIEW OF ECONOMICS AND STATISTICS. - ISSN 0034-6535. - 98:1(2016), pp. 140-158. [10.1162/REST_a_00481]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/237080
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