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Article

The cost of banking crises: new evidence from life satisfaction data

Citation
Montagnoli A & Moro M (2018) The cost of banking crises: new evidence from life satisfaction data. Kyklos, 71 (2), pp. 279-309. https://doi.org/10.1111/kykl.12170

Abstract
It is known that banking crises produce large economic costs. Yet might their consequences be even more far-reaching? We investigate an issue largely unexplored and provide some of the first evidence that banking crises also lead to major, widespread and lasting, psychic losses. We estimate the costs of banking crises with individual life satisfaction; we show that these extend beyond GDP declines and other macroeconomic and financial leakages. For the 2007-8 financial crisis, we find some evidence that the losses are larger for those countries that had previously experienced a credit boom.

Keywords
Well-being; Happiness; Financial Crises; Banking Crises; Trust, Difference-in-differences

Journal
Kyklos: Volume 71, Issue 2

StatusPublished
Author(s)Montagnoli, Alberto; Moro, Mirko
Publication date31/05/2018
Publication date online20/04/2018
Date accepted by journal02/03/2018
URLhttp://hdl.handle.net/1893/26866
PublisherWiley-Blackwell
ISSN0023-5962
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