TY  - JOUR
AU  - White, Eugene N
TI  - The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6063
PY  - 1997
Y2  - June 1997
DO  - 10.3386/w6063
UR  - http://www.nber.org/papers/w6063
L1  - http://www.nber.org/papers/w6063.pdf
N1  - Author contact info:
Eugene N. White
Department of Economics
Rutgers University
75 Hamilton Street
New Brunswick, NJ 08901-1248
Tel: 732-932-7363
Fax: 732/932-7416
E-Mail: white@economics.rutgers.edu
M1  - published as Eugene N. White. "The Legacy of Deposit Insurance: The Growth, Spread, and Cost of Insuring Financial Intermediaries," in Michael D. Bordo, Claudia Goldin, and Eugene N. White, editors, "The Defining Moment: The Great Depression and the American Economy in the Twentieth Century" University of Chicago Press (1998)

AB  - Without the Great Depression, the United States would not have adopted deposit insurance.  While the New Deal's anti-competitive barriers have largely collapsed become" deeply rooted.  This paper examines how market and political competition for deposits raised the level of coverage and spread insurance to all depository institutions.  A comparison of the cost of federal insurance with a counterfactual of an insurance-free system shows that federal insurance ultimately imposed a" higher cost but achieved political acceptance because of the distribution of the burden.
ER  -