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system to interbank contagion. Third, the more concentrated assets are within a money center model, the less stable it is …
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In this paper the authors focus on credit connections as a potential source of systemic risk. In particular, they seek to answer the following question: how do we find densely connected subsets of nodes within a credit network? The question is relevant for policy, since these subsets are likely...
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interest is to study the process of contagion where by one action 'spreads throughout the population' and becomes conventional …. We vary the network of player interaction between a regular lattice and a random network allowing us to model contagion … possibility of contagion and the rate of contagion. …
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networks to show how contagion can propagate under different scenarios when the topology of the financial system, the … simple model of contagion as the one that has been popularized by Gai and Kapadia (2010). Then, we provide a richer model in …
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