Bank failures caused by Large withdrawals: An explanation based purely on liquidity
نویسندگان
چکیده
منابع مشابه
Bank Failures Caused by Large Withdrawals: An Explanation Based Purely on Liquidity∗
In a version of the Diamond and Dybvig [8] model with aggregate uncertainty, we show that there exists an equilibrium with the following properties: all consumers deposit at the bank, all patient consumers wait for the last period to withdraw, and the bank fails with strictly positive probability. Furthermore, we show that the probability of a bank failure remains bounded away from zero as the ...
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ژورنال
عنوان ژورنال: Journal of Mathematical Economics
سال: 2007
ISSN: 0304-4068
DOI: 10.1016/j.jmateco.2007.02.004