Patrick Van Horn

Patrick Van Horn
Southwestern University · Department of Economics and Business

7.65
About
13
Research items
266
Reads
26
Citations
Research Experience
Aug 2013 - Dec 2015
Southwestern University
Position
  • Professor (Assistant)
Aug 2010 - May 2013
New College of Florida
Position
  • Professor (Assistant)
Sep 2007 - May 2010
University of Michigan-Dearborn
Position
  • Professor (Assistant)
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Research
Research items (13)
Article
In the summer of 1931, a financial crisis began in Austria, spread to Germany, forced Britain to abandon the gold standard, crossed the Atlantic, and afflicted financial institutions in the United States. This article describes how banks in New York City, the central money market of the United States, reacted to this trans-Atlantic trauma. New York...
Article
In the boom before the Great Depression, capital requirements for commercial banks were low and fixed. Bankers faced double liability. Failing banks were not bailed out. During the boom before the Great Recession, capital requirements were proportional to risk-weighted assets. Bankers faced limited liability. Banks deemed too big to fail received b...
Article
We analyze the impact of contractionary monetary policy through increases in reserve requirements on bank lending. We compare the lending behavior of banks that were subject to the requirement increases in 1936-37, Federal Reserve member banks, to a group of banks that were not subject to the reserve increase, Federal Reserve nonmember banks. After...
Article
Full-text available
In 1931, a financial crisis began in Austria, struck numerous European nations, forced Britain to abandon the gold standard, and spread across the Atlantic. This article describes how banks in New York City, the central money market of the United States, reacted to events in Europe. An array of data sources – including memos detailing private conve...
Article
In the fall of 1854, a banking panic began in Ohio. Twelve banks failed, representing a sizable portion of the state’s deposits and wiped out the state-chartered class of banks. Bank failures in Illinois, Kentucky, Michigan, and Maryland soon followed. The State Bank of Ohio survived the panic, closing only one branch. All private banks survived, w...
Article
This paper estimates gross loan flows in New York State using quarterly observations of bank balance sheets from 1929 to 1932. We assess the impact of the stock market crash in 1929 and the subsequent Depression years on the creation and destruction of loans in the financial market. After the stock market crash in 1929, loan creation declines and l...
Article
Past research suggests that the Michigan bank holiday in February of 1933 might have been made in haste. The holiday spread panic to neighboring states and was a contributing factor in President Roosevelt's decision to declare a national bank holiday in March. Recently discovered archival evidence suggests the holiday was the culmination of smaller...
Article
Banks in Michigan were opting for self-imposed moratoria during the Great Depression as early as 1931. These plans largely imitated a plan that began in the township of Milford, Michgan. Eventually, all banks in the state were closed in the national holiday declared by President Roosevelt in March 1933. This paper tests the survival rate of the ban...
Article
Recent turmoil in the financial sector has once again thrust bank liquidity and balance sheet management into the spotlight. History offers some insight into liquidity management in times of financial distress. The banking industry experienced a significant amount of turmoil during the Great Contraction of 1929-1933. In response, banks were forced...
Article
Full-text available
New data reveals that bank distress peaked in New York City, at the center of the United States money market, in July and August 1931, when the banking crisis peaked in Germany and before Britain abandoned the gold standard. This paper tests competing theories about the causes of New York's banking crisis. The cause appears to have been intensified...
Article
Full-text available
A banking crisis began in Austria in May 1931 and intensified in July, when runs struck banks throughout Germany. In September, the crisis compelled Britain to quit the gold standard. Newly discovered data shows that failure rates rose for banks in New York City, at the center of the United States money market, in July and August 1931, before Brita...
Article
This paper examines the behavior of all banks in New York State during the Great Contraction and their possible reasons of exit. Combining bank-level balance sheet and failure data for every bank in the state, I find that there are distinct patterns in bank exit. Mergers and consolidations peak in New York City at the height of the banking panics....
Article
The banking industry experienced a significant amount of distress during the Great Contraction of 1929-1933. In response, banks were forced to adjust their portfolios with the changing economy. One aspect banks had control over was their reserves. While there has been extensive analysis of bank reserves after the bank holiday of 1933, little is kno...