The paper uses bank- and instrument-level data on asset holdings and liabilities to identify and estimate a general … equilibrium model of trade in financial instruments. Bilateral ties are formed as each bank selects the size and the … lead to less amplification of partial equilibrium shocks, (ii) the influence of a bank's equity is independent of the size …

to individual banks in the Merton tradition (1974) as a combination put option for the deep tail of bank losses and a … knock-in stop-loss call on bank assets. This model expresses the value of taxpayer loss exposure from a string of defaults … the face value of the debt of the entire sector. We conceive of an individual bank's systemic risk as its contribution to …

the size of the economy, (2) the association between an increase in economic output and an increase in bank development …

on solvent banks leading to bank panics. But financial crises of the last two decades have not fit the mold. A new …

, raising credit terms to their borrowers. The picture that emerges from these findings looks less like a traditional bank run …

urban growth. Our estimates suggest that the presence of a bank at a given location in the late 1830s is associated with …