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We characterize the evolution over time of a network of credit relations among financial agents as a system of coupled … network of liabilities among agents. The average level of risk diversification of the agents coincides with the density of … links in the network. In addition to a process of diffusion of financial distress, we also consider a discrete process of …
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We characterize the evolution over time of a network of credit relations among financial agents as a system of coupled … network of liabilities among agents. The average level of risk diversification of the agents coincides with the density of … links in the network. In addition to a process of diffusion of financial distress, we also consider a discrete process of …
Persistent link: https://www.econbiz.de/10013149415
As the Eurozone crisis drags on, it is evident that a part of the problem lies in the architecture of debt and its liabilities within the Eurozone and, more generally, the European Union. This paper argues that a large part of the problem can be mitigated by permitting appropriately-structured...
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