We use a network model of credit risk to measure market expectations of the potential spillovers from a sovereign …

socially inefficient due to the presence of a network externality: even though banks take the effects of their lending, risk …We provide a framework for studying the relationship between the financial network architecture and the likelihood of … systemic failures due to contagion of counterparty risk. We show that financial contagion exhibits a form of phase transition …

literature on the role of network linkages in fostering systemic risk. …This chapter develops a unified framework for the study of how network interactions can function as a mechanism for … macroeconomic risk originating from microeconomic shocks, and models of financial interactions. Under the assumption that shocks are …

demographic and social network data in 43 villages in South India before microfinance was introduced in those villages and then … tracked eventual participation. We exploit exogenous variation in the importance (in a network sense) of the people who were …

1996 to 2007, U.S. banks in the aggregate increased their regulatory capital through issuance of TPS while their net …

. Moreover, pre-crisis incentive pay appears too strong for an optimal trade-off between trading income and risk which maximizes …

The financial crisis of 2007-9 has sparked keen interest in models of financial frictions and their impact on macro … key stylized facts. In our model, the impact on real activity comes from the spike in risk premiums, rather than …

understand and prevent financial crises. The financial crisis of 2007-2008 provides the opportunity to reassess our understanding …