Lead supervisor:
Prof Mai Le 
Start date: October 2013
Award: General
Subject Pathway:
Economics
Thematic Cluster:
Economy, Enterprise, and Productivity Cluster
Ending “Too Big To Fail” in the Banking Sector
I am adapting the paper by Gertler, Kiyotaki and Queralto to include a default risk by banks, which is currently subsidized by the central bank’s lender of last resort policy so as to prevent bank runs as modelled by Diamond-Dybvig.
I intend to show that equity funding increases welfare as compared to this current deposit insurance regime.