Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Abstract Basic thinking about bank failure has changed considerably in the last 50 years, from interpreting suspensions of payments as inefficient responses in a system lacking integration to advocating deposit-insurance arrangements triggered after funds are depleted. Modern banking theory, after Diamond and Dybvig (J Polit Econ 91:401–419, 1983) and Wallace (Fed Reserve Bank Minneap Q Rev 12(4):3–16, 1988), indicates that despite risk aversion, banks are under pressure and led to offer volatile returns exposed to coordination failure in the form of runs. In this paper, we recover a role for suspensions based on early acquisition of information about opportunistic behavior.