On the basis of a real high stakes insurance experiment with small probabilities of losses, we demonstrate that concern … is a more important driver of WTP for insurance than subjective probability estimates when there is ambiguity surrounding … probability insurance "puzzle" well known from the literature, where a part of individuals pays too much and a part nothing for …

. -- monetary policy ; Endogenous money ; industrial organization approach to banking theory ; money multiplier ; vector error …

A large literature studies bank regulatory policies intendedto control moral hazard problems associated with … depositinsurance and optimal regulatory design. Much of theanalysis has focused on uniform bank capital requirements,risk-based capital ….All formal analyses employ highly simplifiedtreatments of an individual bank or banking system. Thisstudy is concerned with the …

),1 which leads to “fire-sale”–related pecuniaryexternalities; and bank interconnectedness (Allen and Gale2000; Kahn and Santos …