Lirimont, Sebastien Vivier - In: Revue d'économie politique 116 (2006) 4, pp. 487-500
In a Diamond and Dybvig [1983] frame where liquidity shocks are unknown, banks embbed into a network of partners in which to embed so as to decentralize Pareto optimal allocation. Doing so, they increase investment in long term assets, and welfare. The resulting network structure tackles the...