Deposit insurance and financial integration in the Eurozone: A DSGE model
构建了一个包含内生银行挤兑的国际DSGE模型，分析欧元区不同存款保险制度对跨境冲击传导的影响，发现协调存款保险能显著提升核心和外围地区的金融稳定与福利。
The financial and Eurozone debt crises highlighted the importance of deposit insurance coordination in the Eurozone. While the role of deposit insurance in protecting the economy from harmful runs is widely accepted, little is known about the international implications of deposit insurance, and in particular how it affects the cross-border transmission of shocks. This paper proposes a macroeconomic framework to evaluate different deposit insurance regimes in the Eurozone. I develop an international DSGE model with banks that are subject to endogenous and costly runs. The model sheds light on a new transmission channel: a weak deposit insurance in one country generates financial instability in that country, which in turn spills over to the rest of the union due to financial integration. The analysis shows that harmonizing deposit insurance in the Eurozone significantly improves financial stability and welfare both in the Core and Periphery regions.