By a News Reporter-Staff News Editor at Economics Week -- Investigators discuss new findings in European Economies. According to news reporting originating from Shenzhen , People's Republic of China , by VerticalNews editors, the research stated, "During the recent financial crisis, there were bank runs right after government bailout announcements. This paper develops a global game model of information based bank runs to analyze how the announcement of bailouts affects investors' bank run incentives." Our news editors obtained a quote from the research from Peking University , "The equilibrium probability of bank runs is uniquely determined. I conclude that before the announcement, the existence of such bailout policy reduces investors' bank run incentives, but after the announcement, investors may run on the bank, since such an announcement reflects the government's information about the bad bank asset." According to the news editors, the research concluded: "The empirical evidence from TARP is consistent with my theory." For more information on this research see: Bailouts and bank runs: Theory and evidence from TARP. European Economic Review , 2013;64():169-180. European Economic Review can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands . ( Elsevier - www.elsevier.com ; European Economic Review - www.elsevier.com/wps/product/cws_home/505541 ) The news editors report that additional information may be obtained by contacting C.Y. Wang , Peking University , HSBC Business Sch, Shenzhen 518055, People's Republic of China . Keywords for this news article include: Asia , Shenzhen , European Economies, People's Republic of China Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC
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