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dc.contributor.author
Britz, Volker
dc.contributor.author
Gersbach, Hans
dc.contributor.author
Haller, Hans
dc.date.accessioned
2019-05-28T06:46:42Z
dc.date.available
2017-06-12T16:52:43Z
dc.date.available
2017-11-29T10:30:11Z
dc.date.available
2019-05-28T06:46:42Z
dc.date.issued
2016-09
dc.identifier.uri
http://hdl.handle.net/20.500.11850/123317
dc.identifier.doi
10.3929/ethz-a-010711413
dc.description.abstract
We study the consequences and optimal design of bank deposit insurance in a general equilibrium model. The model involves two production sectors. One sector is financed by issuing bonds to risk–averse households. Firms in the other sector are monitored and financed by banks. Households fundbanks through deposits and equity. Deposits are explicitly insured by a deposit insurance fund. Any remaining shortfall is implicitly guaranteed by the government. The deposit insurance fund charges banks a premium per unit of deposits whereas the government finances any necessary bail-outs by lump-sum taxation of households. When the deposit insurance premium is actuarially fair or higher than actuarially fair, two types of equilibria emerge: One type of equilibria supports the socially optimal (Arrow–Debreu) allo-cation, and the other type does not. In the latter case, bank lending is too large relative to equity and the probability that the banking system collapses is positive. Next, we show that a judicious combination of deposit insuranceand reinsurance eliminates all non–optimal equilibrium allocations.
en_US
dc.format
application/pdf
en_US
dc.language.iso
en
en_US
dc.publisher
ETH Zurich, Center of Economic Research (CER-ETH)
en_US
dc.rights.uri
http://rightsstatements.org/page/InC-NC/1.0/
dc.subject
Financial intermediation
en_US
dc.subject
Deposit insurance
en_US
dc.subject
Capital structure
en_US
dc.subject
General equilibrium
en_US
dc.subject
Reinsurance
en_US
dc.title
Deposit insurance in general equilibrium
en_US
dc.type
Working Paper
dc.rights.license
In Copyright - Non-Commercial Use Permitted
dc.date.published
2016
ethz.journal.title
Economics Working Paper Series
ethz.journal.volume
16/258
en_US
ethz.size
50 p.
en_US
ethz.code.ddc
DDC - DDC::3 - Social sciences::330 - Economics
en_US
ethz.code.jel
JEL - JEL::D - Microeconomics::D5 - General Equilibrium and Disequilibrium::D53 - Financial Markets
en_US
ethz.code.jel
JEL - JEL::E - Macroeconomics and Monetary Economics::E4 - Money and Interest Rates::E44 - Financial Markets and the Macroeconomy
en_US
ethz.code.jel
JEL - JEL::G - Financial Economics::G2 - Financial Institutions and Services
en_US
ethz.publication.place
Zurich
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03729 - Gersbach, Hans / Gersbach, Hans
en_US
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03729 - Gersbach, Hans / Gersbach, Hans
ethz.date.deposited
2017-06-12T16:53:33Z
ethz.source
ECOL
ethz.source
ECIT
ethz.identifier.importid
imp593654ea73ac930747
ethz.identifier.importid
imp59366b9b9081720583
ethz.ecolpid
eth:49678
ethz.ecitpid
pub:185701
ethz.eth
yes
en_US
ethz.availability
Open access
en_US
ethz.rosetta.installDate
2017-07-14T13:51:13Z
ethz.rosetta.lastUpdated
2019-05-28T06:46:54Z
ethz.rosetta.exportRequired
false
ethz.rosetta.versionExported
true
ethz.COinS
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