A note on convergence of Peck-Shell and Green-Lin mechanisms in the Diamond-Dybvig model
AUTOR(ES)
Cavalcanti, Ricardo
FONTE
Escola de Pós-Graduação em Economia da FGV
DATA DE PUBLICAÇÃO
27/07/2011
RESUMO
We study the e¤ects of population size in the Peck-Shell analysis of bank runs. We nd that a contract featuring equal-treatment for al- most all depositors of the same type approximates the optimum. Because the approximation also satis es Green-Lin incentive constraints, when the planner discloses positions in the queue, welfare in these alternative spec- i cations are sandwiched. Disclosure, however, is not needed since our approximating contract is not subject to runs. keywords: bank fragility, role of population size, role of aggregate uncer- tainty
ASSUNTO(S)
bank fragility role of population size role of aggregate uncertainty
ACESSO AO ARTIGO
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