4 research outputs found
Moral Hazard in a model of Bank Run with Noisy Signals
We show that multiple equilibria exist in a model of bank run with moral hazard. Furthermore, this is true even with noisy signals on the economic fundamentals. We argue that the conditions under which this happens can arise naturally in models of banking with moral hazard problem.banking, fundamentals, signals, equilibria
Bank runs and noisy signals
We show that even with noisy signals on the quality of a bank's assets multiple equilibria exist in models of banking. We argue that the conditions under which this happens arise naturally in models of banking
Multiple equilibria, information and financial crises
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