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Cetorelli, Nicola - 2014

active in the "assembly line" process of modern financial intermediation, a system that has become known as shadow banking … acquiring the capability to engage in financial intermediation. I document instances of the emergence and growth of such nonbank … activities. I focus on securities lending, a well-understood example of shadow financial intermediation, and document the …

Persistent link: https://www.econbiz.de/10011341012

Insider networks

Erol, Selman; Lee, Michael Junho - 2018

This paper develops a model to study the formation and regulation of information transmission networks. We analyze a cat and mouse game between a regulator, who sets and enforces a regulatory environment, and agents, who form networks to disseminate and share insider information. For any given...

Persistent link: https://www.econbiz.de/10012144705

The federal funds market over the 2007-09 crisis

Copeland, Adam - 2019

developing and estimating a structural model of this market, in which intermediation plays a crucial role and borrowing banks …

Persistent link: https://www.econbiz.de/10012144744

The impact of competition on technology adoption: An apples-to-PCs analysis

Copeland, Adam; Shapiro, Adam Hale - 2010

We study the effect of market structure on a personal computer manufacturer's decision to adopt new technology. This industry is unusual because there exist two horizontally segmented retail markets with different degrees of competition: the IBM-compatible (or PC) platform and the Apple...

Persistent link: https://www.econbiz.de/10010287060

Does central clearing reduce counterparty risk in realistic financial networks?

Garratt, Rodney; Zimmerman, Peter - 2015

Novating a single asset class to a central counterparty (CCP) in an over-the-counter derivatives trading network impacts both the mean and variance of total net exposures between counterparties. When a small number of dealers trade in a relatively large number of asset classes, central clearing...

Persistent link: https://www.econbiz.de/10011340985

Empirical network contagion for U.S. financial institutions

Duarte, Fernando; Jones, Collin - 2017

We construct an empirical measure of expected network spillovers that arise through default cascades for the U.S. financial system for the period 2002-16. Compared to existing studies, we include a much larger cross section of U.S. financial firms that comprises all bank holding companies, all...

Persistent link: https://www.econbiz.de/10011942771

Systemic risk and liquidity in payment systems

Afonso, Gara M.; Shin, Hyun Song - 2008

We study liquidity and systemic risk in high-value payment systems. Flows in high-value systems are characterized by high velocity, meaning that the total amount paid and received is high relative to the stock of reserves. In such systems, banks rely heavily on incoming funds to finance outgoing...

Persistent link: https://www.econbiz.de/10010283532

Counterparty risk in material supply contracts

Boyarchenko, Nina; Costello, Anna M. - 2014

This paper explores the sources of counterparty risk in material supply relationships. Using long-term supply contracts collected from SEC filings, we test whether three sources of counterparty risk - financial exposure, product quality risk, and redeployability risk - are priced in the equity...

Persistent link: https://www.econbiz.de/10011340998

Payment networks in a search model of money

Martin, Antoine; Orlando, Michael; Skeie, David - 2006

In a simple search model of money, we study a special kind of memory that gives rise to an arrangement resembling a payment network. Specifically, we assume that agents can pay a cost to access a central database that tracks payments made and received. Incentives must be provided to agents to...

Persistent link: https://www.econbiz.de/10010283405

Barriers to network-specific innovation

Martin, Antoine; Orlando, Michael J. - 2005

We examine incentives for network-specific investment and the implications for network governance. We model an environment in which participants that make payments over a network can invest in a technology that reduces the marginal cost of using the network. A network effect results in multiple...

Persistent link: https://www.econbiz.de/10010283488