Skip to Main Content

News Releases

Economic Quarterly

Feb. 8, 2018

Richmond Fed’s Economic Quarterly Provides Framework for Estimating Bank Run Models

Richmond, Va.

In the Richmond Fed’s new Economic Quarterly, economist Bruno Sultanum works with existing literature regarding bank runs to move closer to an ultimate goal of a complete theory on bank runs. He illustrates how the theory can be applied to the data by proposing a nonparametric structural estimator for the distribution of liquidity needs in a version of the famous Diamond and Dybvig model of bank runs when only the aggregate level of withdrawals is observed.

Sultanum’s method utilizes the literature that studies the estimation of auctions. Future researchers will be able to build on this framework in order to estimate bank run models in different settings.

This article and others in the latest issue of Economic Quarterly are available on our website.

Also in this issue:

  • The Rise and Fall of the Quantity Theory in Nineteenth Century Britain: Implications for Early Fed Thinking by Robert L. Hetzel
  • Private Efforts for Affordable Mortgage Lending Before Fannie and Freddie by David A. Price and John Walter

The Economic Quarterly is a free publication containing economic analysis pertinent to Federal Reserve monetary and banking policy. More information is available at (800) 322-0565 or online.


As part of our nation’s central bank, the Richmond Fed is one of 12 regional Reserve Banks working together with the Board of Governors to support a healthy economy and deliver on our mission to foster economic stability and strength. We connect with community and business leaders across the Fifth Federal Reserve District—including the Carolinas, District of Columbia, Maryland, Virginia, and most of West Virginia—to monitor economic conditions, address issues facing our communities, and share this information with monetary and financial policymakers. We also work with banks to ensure they are operating safely and soundly, supply financial institutions with currency that’s fit for distribution, and provide a safe and efficient way to transfer funds through our nation’s payments system.

###

Contact Us

Jim Strader
(804) 697-8956
(804) 332-0207 (mobile)

Laura Fortunato
(804) 697-8196
(804) 698-0927 (mobile)