By creating liquid claims on illiquid assets banks provide liquidity to investors but are also exposed to panic-based bank runs. In this paper we implement an experiment based on a global games approach. We investigate the effects of previous experience, induced risk aversion, level-k thinking,...

We study the effects of deposit insurance and observability of previous actions on the emergence of bank runs by means of a controlled laboratory experiment. We consider three depositors in the line of a common bank. Depositors decide in sequence between withdrawing or keeping their money...

We investigate the impact of a large scale debt waiver program for small agricultural borrowers in India on the short term and long term consumption levels of the beneficiaries. We obtain consumption data from three national level surveys conducted before and after the waiver by a federal...