Plausibly Exogenous [1001] - XFABN (10/28/2022)
LHS Variable
Run on life insurers
RHS Variable
Investors’ strategic complementarities
Source of Exogenous Variation
Maximum fraction of extendible funding agreement–backed notes (XFABNs) that could be withdrawn between an individual XFABN’s consecutive election dates as an instrument for investors’ expectations about other investors’ actions
- Foley-Fisher, Narajabad, and Verani (2020), “Self-fulfilling Runs: Evidence from the U.S. Life Insurance Industry”