Economic Quarterly

2010

 

First Quarter 2010

Introduction to the Special Issue on the Diamond-Dybvig Model

Edward S. Prescott

This special issue of the Economic Quarterly is dedicated to the 1983 model of bank runs developed by Douglas Diamond and Philip Dybvig. Their model has been a workhorse of banking research over the last 25 years and during the recent financial crisis it has been one that researchers and policymakers consistently turn to when interpreting financial market phenomena.

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