Ennis, Huberto M.; Keister, Todd - In: Journal of Monetary Economics 57 (2010) 4, pp. 404-419
When policy makers have limited commitment power, self-fulfilling bank runs can arise as an equilibrium phenomenon. We study how such banking panics unfold in a version of the Diamond and Dybvig (1983) model. A run in this setting is necessarily partial, with only some depositors participating....
