Table 5.

Cantonal banks: instrumenting size by local population

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	CIR	CIR	CIR	CIR	ROA	ROA	ROA	ROA
A. Pre-crisis period (1997–2006)
Log(Total Assets)	0.953	1.972	$-$1.438	$-$1.036	0.042	0.027	0.060*	0.064*
	(1.299)	(1.253)	(1.271)	(1.370)	(0.025)	(0.024)	(0.034)	(0.033)
Pop. share w/tert. educ.	$-$13.934	$-$23.466	$-$23.182	$-$24.962	$-$0.297	$-$0.160	$-$0.510	$-$0.530
	(35.802)	(33.769)	(20.006)	(20.575)	(0.542)	(0.526)	(0.323)	(0.337)
Method	OLS	IV	OLS	IV	OLS	IV	OLS	IV
Controls?	No	No	Yes	Yes	No	No	Yes	Yes
Year FE?	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Nr. banks	24	24	24	24	24	24	24	24
N	240	240	240	240	240	240	240	240
Adj. R2	0.04		0.48		0.29		0.49
First-stage F-stat		127.6		74.6		127.6		74.6

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	CIR	CIR	CIR	CIR	ROA	ROA	ROA	ROA
B. Post-crisis period (2010–2019)
Log(Total Assets)	$-$0.390	1.224	$-$3.745***	$-$3.286**	0.078***	0.062**	0.111***	0.091***
	(1.690)	(1.566)	(1.291)	(1.503)	(0.027)	(0.023)	(0.021)	(0.023)
Pop. share w/tert. educ.	9.370	$-$5.145	$-$5.958	$-$7.833	$-$0.595	$-$0.445	$-$0.394*	$-$0.312
	(23.904)	(22.727)	(11.422)	(11.840)	(0.358)	(0.340)	(0.208)	(0.199)
Method	OLS	IV	OLS	IV	OLS	IV	OLS	IV
Controls?	No	No	Yes	Yes	No	No	Yes	Yes
Year FE?	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Nr. banks	24	24	24	24	24	24	24	24
N	240	240	240	240	240	240	240	240
Adj. R2	$-$0.04		0.55		0.22		0.59
First-stage F-stat		110.6		342.2		110.6		342.2

	(1)	(2)	(3)	(4)
	1997–2006		2010–2019
C. First-stage regressions for IV specifications (dep. var.: Log(Total Assets))
Log(Canton Population in 1995)	0.699***	0.668***	0.689***	1.046***
	(0.062)	(0.077)	(0.066)	(0.057)
Pop. share w/tert. educ.	3.872***	3.258**	3.599**	2.153***
	(1.031)	(1.181)	(1.379)	(0.673)
Controls?	No	Yes	No	Yes
Year FE?	Yes	Yes	Yes	Yes
Nr. banks	24	24	24	24
N	240	240	240	240
Adj. R2	0.87	0.92	0.86	0.96

Robust standard errors (clustered by bank) in parentheses.

Significance: *$<0.1$, *$<0.05$, ***$<0.01$