Kiss, Hubert Janoss; Lara, Ismael Rodriguez; Garcia, … - Estructura de Recerca Interdisciplinar Comportament … - 2011
We study the effects of deposit insurance and observability of previous actions on the emergence of bank runs by means … levels of deposit insurance and the possibility of observing other depositors' actions reduce the likelihood of bank runs …. The effect of these variables is not independent. Our data suggest that optimal deposit insurance should take into account …