NotesFAQContact Us
Search Tips
Peer reviewed Peer reviewed
Direct linkDirect link
ERIC Number: EJ1115246
Record Type: Journal
Publication Date: 2016
Pages: 7
Abstractor: As Provided
ISSN: ISSN-0022-0485
A Classroom Experiment with Bank Equity, Deposit Insurance, and Bailouts
Hazlett, Denise
Journal of Economic Education, v47 n4 p317-323 2016
In this classroom experiment, students see how low bank equity requirements can interact with deposit insurance to encourage excessive risk-taking. The experiment fills a niche Admati and Hellwig (2013) have noted: citizens in a democracy must understand why bank owners argue for low equity requirements and why society as a whole is better off with higher requirements. Instructors can run the experiment in principles of economics courses to introduce the topics of banking and financial crisis, or in advanced courses to promote discussion of financial reform. It takes about 45 minutes to run and debrief, and requires no computerization.
Routledge. Available from: Taylor & Francis, Ltd. 325 Chestnut Street Suite 800, Philadelphia, PA 19106. Tel: 800-354-1420; Fax: 215-625-2940; Web site:
Publication Type: Journal Articles; Reports - Research; Tests/Questionnaires
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A