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dc.contributor.authorChakravarty, Surajeet
dc.contributor.authorFonseca, Miguel A.
dc.contributor.authorKaplan, Todd R.
dc.date.accessioned2015-01-27T12:05:23Z
dc.date.issued2014
dc.description.abstractTo understand the mechanisms behind bank run contagions, we conduct bank run experiments in a modified Diamond–Dybvig setup with two banks (Left and Right). The banks׳ liquidity levels are either linked or independent. Left Bank depositors see their bank׳s liquidity level before deciding. Right Bank depositors only see Left Bank withdrawals before deciding. We find that Left Bank depositors׳ actions significantly affect Right Bank depositors׳ behavior, even when liquidities are independent. Furthermore, a panic may be a one-way street: an increase in Left Bank withdrawals can cause a panic run on the Right Bank, but a decrease does not calm depositors.en_GB
dc.identifier.citationVol. 72, pp. 39 - 51en_GB
dc.identifier.doi10.1016/j.euroecorev.2014.09.003
dc.identifier.urihttp://hdl.handle.net/10871/16241
dc.language.isoenen_GB
dc.publisherElsevieren_GB
dc.relation.urlhttp://www.sciencedirect.com/science/journal/00142921en_GB
dc.relation.urlhttp://business-school.exeter.ac.uk/documents/papers/economics/2012/1206.pdfen_GB
dc.subjectbank runsen_GB
dc.subjectcontagionen_GB
dc.subjectExperimentsen_GB
dc.subjectMultiple equilibriaen_GB
dc.titleAn experiment on the causes of bank run contagionsen_GB
dc.typeArticleen_GB
dc.date.available2015-01-27T12:05:23Z
dc.identifier.issn0014-2921
dc.descriptionpublication-status: Publisheden_GB
dc.descriptiontypes: Articleen_GB
dc.descriptionNOTICE: this is the author’s version of a work that was accepted for publication in European Economic Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in European Economic Review, vol. 72, pp. 39-51. DOI 10.1016/j.euroecorev.2014.09.003en_GB
dc.descriptionThis version originally published in University of Exeter Economics Department Discussion Paper Series, Paper No. 12/06en_GB
dc.identifier.journalEuropean Economic Reviewen_GB


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