Empirical studies emphasise that higher financial development (FD) amplifies the output cost of banking crises. However, no study has so far investigated the effect of FD on another key dimension of banking crises, namely their duration. Using a large sample of banking crises over the 1977–2014 period, we find that higher FD is associated with a significant increase in the duration of banking crises (DBC). This result is robust to a broad range of alternative specifications and is unaffected by unobserved heterogeneity or endogeneity. Finally, we show that the effect of FD on DBC is subject to nonlinearities and varies across decades and with the level of economic development.

中文翻译：

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更多的资金会导致更长时间的危机吗？

实证研究强调更高的金融发展（FD）放大了银行危机的产出成本。然而，到目前为止，还没有研究调查 FD 对银行业危机的另一个关键维度（即其持续时间）的影响。使用 1977-2014 年期间的大量银行危机样本，我们发现较高的 FD 与银行危机持续时间 (DBC) 的显着增加有关。这一结果对广泛的替代规范是稳健的，并且不受未观察到的异质性或内生性的影响。最后，我们表明 FD 对 DBC 的影响是非线性的，并且随着经济发展水平的变化而变化。