Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/222035 
Title (translated): 
On the behavior of depositors: Literature review
Year of Publication: 
2018
Series/Report no.: 
IEHAS Discussion Papers No. MT-DP - 2018/22
Publisher: 
Hungarian Academy of Sciences, Institute of Economics, Budapest
Abstract (Translated): 
The aim of this study is to review what we know about depositors' behavior, using empirical observations and experimental data. I find that both fundamental problems and coordination failures between depositors explain depositors' behavior and therefore the emergence of bank runs. I show that the heterogeneity of depositors matters, because in bank runs different depositors behave in different ways. In the presence (absence) of fundamental problems experience in banking and relationship with the bank increase (decrease) the likelihood of withdrawal. Gender, educational attainment and financial sophistication do not seem to affect systematically if a depositor withdraws her funds from the bank or not. However, social networks (and the information transmitted by them) matter. Deposit insurance reduces the probability of bank runs, but cannot eliminate it. Experimental results are in line with the empirical findings.
Subjects: 
bank runs
depositors' decisions
empirical data
experiment
JEL: 
C91
D8
G4
G21
Document Type: 
Working Paper

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