Acharya, Sankarshan; Dreyfus, Jean-Francois - In: Journal of Finance 44 (1989) 5, pp. 1313-33
Optimal dynamic regulatory policies for closing ailing banks and for deposit insurance premia are derived as functions of the rate of flow of bank deposits and interest paid on deposits, the economy's risk-free interest rate, and the regulators' bank audit/administration costs. Under competitive...