| Abstract: | This article has empirically studied determinants of interstate differentials in the S&L failure rate. The heteroskedastic-TOBIT model used in estimation turns out to perform much better than either OLS or the homoskedastic-TOBIT. Significant efficiency gain is obtained in formulating the multiplicative heteroskedasticity. Four types of variables are important: regional economic conditions, asset/liability management, regulatory structure, and politics.Georgia Institute of TechnologyGeorgia Institute of Technology |
