Cavalcanti, Ricardo; Monteiro, Paulo Klinger - FGV/EPGE Escola Brasileira de Economia e Finanças, … - 2011
Sequential service in the banking sector, as modeled by Diamond and Dybvig (1983), is a barrier to full insurance and potential source of financial fragility against which deposit insurance is infeasible (Wallace, 1988). In this paper, we pursue a different perspective, viewing the sequence of...