Wheelock, David C; Kumbhakar, Subal C - In: Journal of Money, Credit and Banking 27 (1995) 1, pp. 186-201
This article investigates adverse selection and moral hazard in the voluntary deposit insurance system of Kansas, which operated from 1909 to 1929. Regulations were imposed to limit risk-taking and membership was made voluntary to assuage objections that insurance forces conservative banks to...