Li, Zhang; Lin, Xiaojun; Peleato-Inarrea, Borja; … - arXiv.org - 2014
This paper studies the problem of optimally allocating a cash injection into a financial system in distress. Given a one-period borrower-lender network in which all debts are due at the same time and have the same seniority, we address the problem of allocating a fixed amount of cash among the...