This paper uses historical data on Texas banks to examine one possible reform to government-provided deposit insurance, increased reliance on market incentives. The Texas experience is unusual because banks faced two options under which they could join a state-mandated deposit insurance program,...

This paper explores the consequences of a deepening in financial markets by examining the case of Texas at the turn of the last century. In the early 1900s, the Texas legislature legalized state-chartered banks, and, as a result, Texas experienced increased financial-market depth. The evidence...

Small business lending data are analyzed using the Federal Reserve Bank "Report on Condition and Income" that identifies three levels of lending: (1) loans with original amounts of $100,000 or less; (2) loans with original amounts of $100,001 to $250,000; and (3) loans with original amounts of...