Aggregate concentration and the cost of systemic risk
Aggregate concentration may exacerbate systemic risk if the social cost of business failure is a superlinear function of the fraction of industry capacity lost to failure. This result suggests new empirical tests to inform policy debates, as well as supporting an efficiency rationale for restricting aggregate concentration under certain conditions.
Year of publication: |
2007
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Authors: | Shaffer, Sherrill |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 14.2007, 6, p. 425-428
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Publisher: |
Taylor & Francis Journals |
Saved in:
freely available
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