Douglas W. Diamond

Research topics

• Banking stability, regulation, efficiency · 2 papers
• Economic theories and models · 2 papers
• Global Financial Crisis and Policies · 1 paper
• Corporate Finance and Governance · 1 paper

Frequent co-authors

• Philip H. Dybvig · 1 paper

Papers

1. Bank Runs, Deposit Insurance, and LiquidityJournal of Political Economy · 1983 · 9,668 citations

   This paper shows that bank deposit contracts can provide allocations superior to those of exchange markets, offering an explanation of how banks subject to runs can attract deposits. Investors face privately observed risks which lead to a demand for liquidity.…

2. Financial Intermediation and Delegated MonitoringThe Review of Economic Studies · 1984 · 8,651 citations

   This paper develops a theory of financial intermediation based on minimizing the cost of monitoring information which is useful for resolving incentive problems between borrowers and lenders. It presents a characterization of the costs of providing incentives for delegated monitoring…