On the welfare equivalence of asset markets and banking in Diamond Dybvig economies |
| |
Authors: | Alexander Zimper |
| |
Institution: | Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa |
| |
Abstract: | Why do people choose bank deposit contracts over a direct participation in asset markets? In their seminal paper, Diamond and Dybvig’s (1983) answer this question by claiming that bank deposit contracts can implement allocations that are welfare superior to asset markets equilibria. The present paper demonstrates that this claim is false whenever the asset market participants are highly rational. |
| |
Keywords: | G14 G21 |
本文献已被 ScienceDirect 等数据库收录! |
|