We examine the growth implications of bank runs. To do so, we construct an endogenous growth model in which bank runs occur with positive probability in equilibrium. In this setting, a bank run has a permanent effect on the capital stock and on the level of output. In addition, the possibility of a bank run changes the portfolio choice of banks and thereby affects the long-run growth rate. We consider two different equilibrium selection rules. In the first, a run is triggered by sunspots and occurs with a fixed probability. A higher probability of a run in this case leads banks to hold a more liquid portfolio, which decreases total investment and thereby reduces capital formation. Hence the economy grows slower, even when a run does not occur. Under the second selection rule, the probability of a run is influenced by the bank's portfolio choice. This leads banks to place more resources in long-term investment, and the economy both grows faster and experiences fewer runs.Departamento de Economía