We first develop a standard theoretical model that shows that the likelihood of a collapse of the banking industry of a developing country increases, as the joint prevalence of large pandemics such as AIDS and malaria increases. We also show that the optimal bank reserves increase as the...

International Symposia in Economic Theory and Econometrics Volume 20 NONLINEAR MODELING OF ECONOMIC AND FINANCIAL TIME-SERIES EDITED BY FREDJ JAW ADI Universite d'Evry Val d'Essonne & Amiens School of Management, ...