On the effects of deposit insurance and observability on bank runs: an experimental study
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F12%3A00388372" target="_blank" >RIV/00216208:11640/12:00388372 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1111/j.1538-4616.2012.00548.x" target="_blank" >http://dx.doi.org/10.1111/j.1538-4616.2012.00548.x</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1111/j.1538-4616.2012.00548.x" target="_blank" >10.1111/j.1538-4616.2012.00548.x</a>
Alternative languages
Result language
angličtina
Original language name
On the effects of deposit insurance and observability on bank runs: an experimental study
Original language description
We study the effects of deposit insurance and observability of previous actions on the emergence of bank runs by means of a controlled laboratory experiment. We consider three depositors in the line of a bank, who decide between withdrawing or keeping their money deposited. We have three treatments with different levels of deposit insurance which reflect the losses a depositor may incur in the case of a bank run.We find that different levels of deposit insurance and the possibility of observing other depositors? actions affect the likelihood of bank runs. When decisions are not observable, higher levels of deposit insurance decrease the probability of bank runs. When decisions are observable, this need not to be the case. These results suggest that (i)observability might be considered as a partial substitute of deposit insurance and (ii) the optimal deposit insurance should take into account the degree of observability.
Czech name
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Czech description
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Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Money Credit and Banking
ISSN
0022-2879
e-ISSN
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Volume of the periodical
44
Issue of the periodical within the volume
8
Country of publishing house
US - UNITED STATES
Number of pages
15
Pages from-to
1651-1665
UT code for WoS article
000311614900008
EID of the result in the Scopus database
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