The pattern of financial linkages is important in many areas of banking and finance. Yet bilateral linkages are often unknown, and maximum entropy serves as the leading method for estimating unobserved counterparty exposures. This paper proposes an efficient alternative that combines...

We study the liquidity allocation among European banks around the Lehman insolvency using a novel dataset of all interbank loans settled via the Eurosystem’s payment system TARGET2. Following the Lehman insolvency, lenders in the overnight segment become sensitive to counterparty...

When banks choose similar investment strategies, the financial system becomes vulnerable to common shocks. Banks decide about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed from observing the actions of peers. When the social...

The internationalization of cities and the constitution of a new international space of power involves a much more expressive number of cities than the usual global cities. Nowadays, dozens of international organizations are composed of regional capitals, medium, and even small cities. With...

Directed links in cash flow networks affect the cross-section of price exposures and market prices of risk in equilibrium. In an asset pricing model featuring mutually exciting jumps, we measure directedness through an asset's shock propagation capacity (spc). In the model, we prove: (i) Cash...

Digital work settings potentially facilitate remote collaboration and thereby decrease geographic frictions in knowledge work. Here, I analyze spatial collaboration patterns of some 191 thousand software developers in the United States on the largest code repository platform GitHub. Despite...

Despite the ongoing consolidation trend in the banking industry and the attention some mergers (in particular between large banks) have been receiving, there is no consistent picture of the impact of mergers on the stability of the financial system. In this paper, we aim to provide a universal...

This paper examines the importance of social and geographical networks in structuring entry into skilled occupations in premodern London. Using newly digitised records of those beginning an apprenticeship in London between 1600 and 1749, we find little evidence that networks strongly shaped...