ABSTRACT
This chapter provides an alternative research approach that can provide the data necessary to analyze the empirical evidence on the issue. The early 1980s marked a time of major change in U. S. financial markets. The impact of increased competition and geographical deregulation is perhaps felt most severely in rural areas where small, country banks were relatively insulated by past regulation from national financial markets and the competitive pressures of large financial institutions. There are two primary benefits associated with banking research approach. First, it is designed to evaluate the impact of a macroeconomic change, financial deregulation, on rural areas directly, rather than applying national level impacts to rural areas. Second, research approach connects research and policymaking in a direct way by making evaluation of results by policymakers part of the research design. There is little question that deregulation of the financial services industry will have some effect on rural capital availability.
