Teaching Bank Runs with Classroom Experiments

Once relegated to cinema or history lectures, bank runs have become a modern phenomenon that captures the interest of students. We use a simple classroom experiment based upon the Diamond-Dybvig Model (1983) to demonstrate how a bank run, a seemingly irrational event, can occur rationally. We then present possible topics for discussion including various ways to prevent bank runs and moral hazard.

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Year of publication:	2009-01-12
Authors:	Balkenborg, Dieter ; Kaplan, Todd R. ; Miller, Tim

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Balkenborg, Dieter and Kaplan, Todd R. and Miller, Tim (2009): Teaching Bank Runs with Classroom Experiments.
Classification:	A22 - Undergraduate ; C92 - Laboratory; Group Behavior ; G21 - Banks; Other Depository Institutions; Mortgages
Source:	BASE

Persistent link: https://www.econbiz.de/10015219071