Femminis, Gianluca; Ruggerone, Luigi - In: Contributions to Macroeconomics 4 (2004) 1, pp. 1153-1153
We present a simple multiple equilibria model that incorporates the functioning of crony capitalism. We find that a government which is keen to support the interests of the élite is ready to stand the risk of a bank run since this is part of an equilibrium where investments are heavily...