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Introduction to the Special Issue on the Diamond-Dybvig Model

By Edward S. Prescott

Economic Quarterly

First Quarter 2010

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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