| Abstract: | This study examines the debates surrounding interstate bankingreform in the 1980sand the effect of geographic deregulationon the availability of credit in the stales. Deregulation doeshave a significant and positive impact on the amount of totalcommercial and industrial loans made by banks. The pro and conarguments about deregulation are then reconsidered in lightof this finding. The study concludes that states can help stimulateeconomic growth through regulatory policy, though the totalimpact is relatively small. This research also suggests thatthe veracity of policy arguments can be judged by the richnessof the institutional context in which they are grounded. |
