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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