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The top documents tagged [model of moral hazard]
Banking and Bank Runs We are going to learn a bit about what a bank does and why it leads to the possibility of bank runs. –We will start out today with
213 views
TESTING FOR MORAL HAZARD IN FINANCIAL NETWORKS
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Diamond Dybvig Model (1983) Captures elements of what a bank does. Shows that there is a basic problem of bank runs. The model consists of two parties
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Banking and Bank Runs We are going to learn a bit about what a bank does and why it leads to the possibility of bank runs. –We will start out today with
213 views