Journal of Political Economy Vol. 95 No. 3 1987
Bank Runs as an Equilibrium Phenomenon
Abstract
A standard demand-deposit contract in which individuals are entitled to their full deposit at any time provided the bank is solvent is analyzed in a context in which there are no exogenous events on which agents condition their behavior and a unique equilibrium involving a bank run with positive probability is shown to exist.
- DOI
- 10.1086/261468
- Volume
- 95
- Issue
- 3
- Pages
- 485-491
- Language
- en
- Sources
- crossref openalex