tie these features together in a model of banks' herding behavior. Most existing models of herding behavior can explain … the other hand, many models that try to explain excessive risk-taking do not contain any incentive for herding. This paper … develops astate-preference model of simultaneous herding and excessive risktaking. Thus, the model can help in understanding …

anticipation of this bailout undermines a bank's private incentive to impose a bail-in. In the resulting equilibrium, bail-ins are …

This paper studies the relation between bank herding and financial system stability. I develop a set of bank … relation between bank herding and systemic risk contribution. I find that for large banks, asset herding is associated with … between bank herding and systemic risk contribution …