Experimental evidence on bank runs with uncertain deposit coverage

Peia, Oana; Vranceanu, Radu

doi:10.1016/j.jbankfin.2019.06.012

Cited by 16 publications

(7 citation statements)

References 39 publications

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“…On the other hand, Madies (2006), Schotter and Yorulmazer (2009), Peia and Vranceanu (2019) seem to be more policy oriented than the other papers. They present policy suggestions such as suspension of deposit convertibility and partial/full deposit insurance on preventing and mitigating the effects of runs.…”

Section: Discussionmentioning

confidence: 66%

“…Kiss, Rodriguez-Lara, and Rosa-Garcia (2012) implies that observability can be partially replaced by deposit insurance. Peia and Vranceanu (2019) examines bank runs in a partial and uncertain deposit insurance scenario. The uncertainty in Peia and Vranceanu (2019)'s experiment refers to the size of the deposit insurance coverege and lack of information about the number of withdrawals.…”

Section: Policy Oriented Literature Of Bank Runsmentioning

confidence: 99%

“…Visit en.wikipedia.org/wiki/List_of_bank_runs for more information on the history of bank runs around the World.3 SeeKiss, Rodriguez-Lara, Rosa-Garcia (2016);(2018);Dijk (2017);Peia and Vranceanu (2019);Arifovic and Jiang (2019);Shakina (2019).…”

mentioning

confidence: 99%

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A LITERATURE REVIEW FOR EXPERIMENTAL STUDIES OF BANK RUNS / Banka Hücumlarına İlişkin Deneysel Çalışmalara Ait Bir Literatür Taraması

Hanedar

2020

Uluslararası Ekonomi İşletme Ve Politika Dergisi

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With the bank runs experienced in different western countries during and after the 2007-2008 global financial crisis, bank run phenomena can be seen as the awakening of a ghost in financial markets, which is a definite call for research for the fundamental factors that derive bank runs. Prior to the global financial crisis there were only two experimental researches of bank runs. Parallel with the experimental methods being popular in finance and the latest global financial crisis, the number of papers in the field has risen sharply. This paper reviews the state of art for the experimental researches of bank runs. The results of the literature review indicate that some papers are approaching to the issue in a more individual level by taking into account psychological factors, while other papers are mostly interested in macro impacts of bank runs, such as contagion effects.

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Section: Discussionmentioning

confidence: 66%

Section: Policy Oriented Literature Of Bank Runsmentioning

confidence: 99%

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A LITERATURE REVIEW FOR EXPERIMENTAL STUDIES OF BANK RUNS / Banka Hücumlarına İlişkin Deneysel Çalışmalara Ait Bir Literatür Taraması

Hanedar

2020

Uluslararası Ekonomi İşletme Ve Politika Dergisi

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“…The experimental studies by Madies (2006) or Davis and Reilly (2016) highlight the benefits of suspension of convertibility. Experimental evidence also shows that deposit insurance diminishes the incidence of bank runs, albeit it does not eliminate them completely (Schotter and Yorulmazer, 2009;Kiss et al, 2012;Peia and Vranceanu, 2019). 1 Our study is also related to Kinateder et al (2020), who assume that only withdrawals are observed as a default, but depositors can make visible to subsequent depositors the decision to keep their funds deposited (at a modest cost).…”

Section: Introductionmentioning

confidence: 77%

Preventing (panic) bank runs

Kiss

Rodríguez-Lara

Rosa‐García

2022

Journal of Behavioral and Experimental Finance

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“…Similar group sizes are employed in various experiments of coordination games, see, among others,Schotter & Yorulmazer (2009),Garratt & Keister (2009),Kiss et al (2012),Peia & Vranceanu (2019).…”

mentioning

confidence: 99%

Financial Contagion and the Wealth Effect: An Experimental Study

Bayona¹,

Peia

2020

SSRN Journal

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We design a laboratory experiment to test the importance of wealth as a channel for financial contagion across markets with unrelated fundamentals. Specifically, in a sequential global game, we analyze the decisions of a group of investors that hold assets in two markets. We consider two treatments that vary the level of diversification of these assets across markets, which allows us to disentangle the wealth effect from other sources of financial contagion. We provide evidence of contagion due to a wealth effect when investors have completely diversified portfolios. In this treatment, for certain ranges of fundamentals, we show that a coordination failure in the first market reduces investors' wealth, which makes them more likely to withdraw their investments in the second market, thereby increasing the probability of a crisis.

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Experimental evidence on bank runs with uncertain deposit coverage

Cited by 16 publications

References 39 publications

A LITERATURE REVIEW FOR EXPERIMENTAL STUDIES OF BANK RUNS / Banka Hücumlarına İlişkin Deneysel Çalışmalara Ait Bir Literatür Taraması

A LITERATURE REVIEW FOR EXPERIMENTAL STUDIES OF BANK RUNS / Banka Hücumlarına İlişkin Deneysel Çalışmalara Ait Bir Literatür Taraması

Preventing (panic) bank runs

Financial Contagion and the Wealth Effect: An Experimental Study

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