Semantic Scholar Open Access 2019 11 sitasi

Liquidity regulation, banking history and financial fragility: An experimental examination

Douglas D. Davis Oleg Korenok John P. Lightle

Abstrak

Abstract We report an experiment conducted to evaluate interactions between liquidity requirements and depositors’ experiences with the banking system. Treatments consist of combinations of required liquidity levels and ‘weak’ or ‘strong’ background conditions, intended to induce stable histories of play (with few bank runs), or unstable histories of play (where bank runs are common). Experimental results suggest that both increased liquidity levels and a stable history of play improve the incidence of coordination on the Pareto-preferred no-run outcome. Nevertheless, even with an unstable history, non-degenerate no-run outcomes occur quite reliably with high liquidity requirements.

Topik & Kata Kunci

Penulis (3)

D

Douglas D. Davis

O

Oleg Korenok

J

John P. Lightle

Format Sitasi

Davis, D.D., Korenok, O., Lightle, J.P. (2019). Liquidity regulation, banking history and financial fragility: An experimental examination. https://doi.org/10.1016/j.jebo.2019.09.005

Akses Cepat

Lihat di Sumber doi.org/10.1016/j.jebo.2019.09.005
Informasi Jurnal
Tahun Terbit
2019
Bahasa
en
Total Sitasi
11×
Sumber Database
Semantic Scholar
DOI
10.1016/j.jebo.2019.09.005
Akses
Open Access ✓