systemic risk outcomes when the true pattern of counterparty exposures is unknown. …

about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed … from observing the actions of peers. When the social belief is strong and the financial network is fragmented, banks follow … endogenously formed interbank networks, however, less informative signals lead to higher network density and less synchronization …

about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed … from observing the actions of peers. When the social belief is strong and the financial network is fragmented, banks follow … endogenously formed interbank networks, however, less informative signals lead to higher network density and less synchronization …

about their investment strategy ex-ante based on a private belief about the state of the world and a social belief formed … from observing the actions of peers. When the social belief is strong and the financial network is fragmented, banks follow … endogenously formed interbank networks, however, less informative signals lead to higher network density and less synchronization …

This paper studies strategic savings and free-riding behaviours among ex- ante vulnerable firms in a fixed debt network …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest …-off. Liquidity requirements unequivocally decrease systemic risk but at the cost of lower efficiency (measured by aggregate … traded quantities are determined by means of a matching algorithm. Contagion occurs through liquidity hoarding, interbank …

We construct an empirical measure of expected network spillovers that arise through default cascades for the U … spillovers from 2002 to 2007 and from 2013 to 2016. However, between 2008 and 2012, we find that default spillovers can amplify …

financial network where good firms enjoy direct and indirect benefits from linking with one another. Bad risks benefit from … efficient ones. We also study extensions with heterogenous “bad risks,” with diversity in the costs to good risk firms of …

resilience of different stylized network topologies and a sensitivity analysis); (iii) generalizing the model to deal with the …