Teaching Bank Runs with Classroom Experiments
نویسندگان
چکیده
منابع مشابه
Teaching Economics with Classroom Experiments
Classroom experiments are effective because students are placed directly into the economic environments being studied. This paper surveys some diverse applications, e.g. speculation and multiple markets, coordination games, voting and agendas, and a simple macroeconomy, with particular attention to practical details. After participating, students bring first-hand experience to the discussion, w...
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Banks are a vital part of the economy because they provide an important channel through which many businesses get their financing. However, as we know from the history of the United States and other countries, banks can be subject to runs and panics. A panic that encompasses a large part of the banking system can seriously disrupt economic activity. During a run, a bank experiences much heavier...
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In a Diamond and Dybvig (1983) environment, Green and Lin (2003) take a mechanism design approach and show that a bank run equilibrium cannot exist. Peck and Shell (2003) generalize their economic environment and show that it can. The bank run, however, does not emerge because of modifications to the economic environment but rather because the mechanism that implements allocations is not an opt...
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Traditional models of bank runs do not allow for herding e¤ects, because in these models withdrawal decisions are assumed to be made simultaneously. I extend the banking model to allow a depositor to choose his withdrawal time. When he withdraws depends on his consumption type (patient or impatient), his private, noisy signal about the quality of the banks portfolio, and the withdrawal histori...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2009
ISSN: 1556-5068
DOI: 10.2139/ssrn.1328234