Optimal Diamond–Dybvig mechanism in large economies with aggregate uncertainty

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2014
Volume: 40
Issue: C
Pages: 95-102

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper characterizes the direct mechanism which implements the constrained optimal outcome in a version of Diamond and Dybvig (1983) with aggregate uncertainty and a continuum of agents. Using this result, numerical examples where the best direct mechanism has a bank-run-equilibrium are easily obtained.

Technical Details

RePEc Handle
repec:eee:dyncon:v:40:y:2014:i:c:p:95-102
Journal Field
Macro
Author Count
1
Added to Database
2026-01-29