The University of Kent at Canterbury PSSRU Cornwallis Building, University of Kent at Canterbury, Canterbury, Kent CT2 7NF Tel: 01227 823963 Fax: 01227 827038 Email: [email protected] Site Director: Professor Ann Netten The London School of Economics PSSRU London School of Economics, Houghton Street, London WC2 2AE Tel: 020 7955 6238 Fax: 020 7955 6131 Email: [email protected] Site Director: Profe...

This paper reconciles the two explanations of a financial crisis, the self-fulfilling prophecy and the fundamental causes, in an empirically-relevant framework, by explicitly modeling the costly voluntary acquisition of information about fundamentals in a variant of Diamond and Dybvig (1983). In the “run” equilibrium investors engage in costly evaluation of projects, so that banks with lower-re...

In a finite-trader version of the Diamond-Dybvig (1983) model, the symmetric, ex-ante efficient allocation is implementable by a direct mechanism (i.e., each trader announces the type of his own ex-post preference) in which truthful revelation is the strictly dominant strategy for each trader. When the model is modified by formalizing the sequential-service constraint (cf. Wallace, 1988), the t...

We study the Diamond-Dybvig model of financial intermediation (JPE, 1983) under the assumption that depositors have information about previous decisions. Depositors decide sequentially whether to withdraw their funds or continue holding them in the bank. If depositors observe the history of all previous decisions, we show that there are no bank runs in equilibrium independently of whether the r...

Green and Lin study a version of the Diamond-Dybvig model with a finite number of agents, independent determination of each agent’s type (impatient or patient), and sequential service. For special preferences, they show that the ex ante first-best allocation is the unique equilibrium outcome of the model with private information about types. For general preferences, we show, via a simple argume...

Some studies characterize bubbles as speculative phenomena in which investors pay more than the value of the asset’s dividend stream in anticipation of receiving a profit by selling the asset later. We study the number of consumption opportunities as a necessary condition for the existence of bubbles. Our model permits continuous trading over a finite horizon, but it also assumes investors cons...

The susceptibility to Terbacil of six randomly selected strawberry cultivars (‘Aromas’, ‘Chambly’, ‘Harmonie’, ‘Kent’, ‘La Clé des Champs’ and ‘Seascape’) was analysed using chlorophyll florescence (CF) in comparison with visual observation, in an attempt to develop a method for use in a breeding programme to select herbicide-resistant strawberry lines. Terbacil was applied at one of five rates...

WARWICK – Kent Hospital is seeking approval to perform both emergency and elective coronary angioplasty procedures. The hospital submitted a letter of intent (LOI) to the Rhode Island Department of Health recently stating “intent to develop a coronary angioplasty program within one year” and within the next eight weeks Kent will submit a full application for a certificate of need. Currently, th...

Alexandra Moores, Saranna Chipper-Keating, Lei Sun, Gareth McVicker, Lynn Wales, Krishna 6 Gashi and Ian C. Blomfield* 7 8 School of Biosciences, University of Kent, Canterbury, Kent 9 CT2 7NJ, United Kingdom 10 11 12 * Corresponding author. E-mail: [email protected]; Phone (0)1227 823697; Fax (0)1227 13 763912 14 Running Title: RfaH suppresses MicA inhibition 15