This paper tests the hypothesis that average interest rates for ten categories of commercial loans (short-term and long-term loans in five size classes) in the regions of the United States behave as if they were generated in an integrated national market. The tests, derived from two models of...

The incidence of deposit taxes has been connected to interesting questions in the theory of financial intermediation. Some researchers have found evidence supporting the notion that the deposits tax is borne by bank borrowers and that, therefore, bank loans are "unique." Other studies indicate...