In this paper a simple optimizing model is developed to analyze the implications of a banking crisis. Banks are incorporated by assuming that they intermediate funds between firms and households. It is shown that when depositors perceive the quality of deposits to have deteriorated, they switch...

In the early 1990s, a host of unitary states in Southeast Asia began pursuing, at their own pace, the process of decentralizing their systems of governance. The form and function of these reforms were documented in the World Bank's report, East Asia Decentralizes: Making Local Government Work,...