Zimper, Alexander2014-10-222014-10-222013-02Zimper, A 2013, 'Optimal liquidity provision through a demand deposit scheme : the Jacklin critique revisited', German Economic Review, vol. 14, no. 1, pp. 89-107.1465-6485 (print)1468-0475 (online)10.1111/j.1468-0475.2012.0566.xhttp://hdl.handle.net/2263/42432We derive conditions such that optimal liquidity provisions through a demand deposit scheme can be sustainably implemented in a subgame perfect Nash equi- librium under the assumption that renegade investors have free access to ex-post asset markets. As our qualitative main nding we demonstrate that such sus- tainability is more likely for poor than for rich scheme participants in terms of future income. By establishing sustainability for low future income popula- tions, our formal analysis therefore o¤ers an important quali cation of Jacklin s (1987) in uential claim that an optimal demand deposit scheme is not sustainable whenever there exists the possibility of an ex-post asset market.en© 2012 The Author, German Economic Review © 2012 Verein fur Socialpolitik. Published by Blackwell Publishing. This is the pre-peer reviewed version of the following article : Optimal liquidity provision through a demand deposit scheme : the Jacklin critique revisited, German Economic Review, vol. 14, no. 1, pp. 89-107, 2013, doi :10.1111/j.1468-0475.2012.0566.x. The definite version is available at : http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1468-0475.Jacklin critiqueFinancial intermediationAsset marketsArticle