A model of tiered settlement networks

by James Chapman, Jonathan Chiu, and Miguel Molico

This paper develops a model of settlement system to study the endogenous structure of settlement networks, and the welfare consequences of clearing agent failure. The equilibrium degree of tiering is endogenously determined by the cost structure and the information structure. The degree of tiering is decreasing in the fixed cost of operating the second-tier network and the availability of public credit history. Furthermore, the welfare effects of clearing agent failure can be decomposed into operational inefficiency and the loss of private information. -- Payment, learing, and settlement systems

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Year of publication:	May 2008
Other Persons:	Chapman, James (contributor) ; Chiu, Jonathan (contributor) ; Molico, Miguel (contributor)
Publisher:	Ottawa : Bank of Canada
Subject:	Zahlungsverkehr \| Payment system \| Clearing \| Financial clearing \| Netzwerk \| Network \| Asymmetrische Information \| Asymmetric information \| Kreditwürdigkeit \| Credit rating \| Skalenertrag \| Returns to scale \| Wohlfahrtsanalyse \| Welfare analysis \| Theorie \| Theory

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Extent:	Online-Ressource, III, 40 S. = 393 KB, Text graph. Darst.
Series:	Staff working paper / Bank of Canada. - Ottawa : [Verlag nicht ermittelbar], ISSN 1701-9397, ZDB-ID 2278568-1. - Vol. 2008-12
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Zsfassung in franz. Sprache Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/53816 [Handle]
Classification:	E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; E58 - Central Banks and Their Policies ; G21 - Banks; Other Depository Institutions; Mortgages
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10003711684