positive shocks, which creates moral hazard and is best explained by a “too-systemic-to-fail” effect. The contagion effects are … economically significant contagion channel for tail spread increases …

We develop an agent-based model of traditional banks and asset managers to investigate the contagion risk related to … exacerbate contagion when their voluntary liquid buffers are fully utilised. Fourth, a system with larger and more interconnected … agents is more prone to contagion risk stemming from funding shocks. …

distance, trade, and finance to the US subprime mortgage and Eurozone debt crisis areas. To understand the causes of the cross … primary contagion driver, rather than the trade channel. Given the substantial degree of financial contagion, I run a series … similarly severe contagion in the future, so long as there is not capital immobility to the degree that the local sovereign can …

portfolio contagion. In a complementary regression analysis, the effect of counterparty risk on Credit Default Swap (CDS …

contagion using the theories of dynamical systems. Here, our main goal is to model the Eurozone financial crisis within that … detail how a suitable model can be set up for the Eurozone crisis. The dynamical system is defined by the evolution of the … prospect theory. Contagion is formulated in terms of how the market instability indicators for the different subsystems and the …