counterparty but also on the risk of others in the network of exposures. However, frequently, market participants do not observe … the actual network of exposures. I propose an approach that incorporates this network of exposures, among other factors …

that while the global network structure remains stable, individual exposures are more dynamic. The main message from the …

This chapter develops a unified framework for the study of how network interactions can function as a mechanism for … small, we provide a fairly complete characterization of the structure of equilibrium, clarifying the role of network … literature on the role of network linkages in fostering systemic risk …

This chapter develops a unified framework for the study of how network interactions can function as a mechanism for … small, we provide a fairly complete characterization of the structure of equilibrium, clarifying the role of network … literature on the role of network linkages in fostering systemic risk …

We investigate the information content of stock correlation based network measures for systemic risk rankings, such as … ranking based on average pairwise stock correlations. Next, we find that correlation based network measures still appear to … more subtle network relations and feedback loops. …

When a bank experiences a negative shock to its equity, one way to return to target leverage is to sell assets. If … asset sales occur at depressed prices, then one bank's sales may impact other banks with common exposures, resulting in … explains how the distribution of leverage and risk exposures across banks contributes to systemic risk. We compute bank …

This paper studies the consequences of a regulatory pay cap in proportion to assets on bank risk, bank value, and bank …. The cap encourages diversification and reduces the need a bank has to focus on a limited number of asset classes. The cap …