This paper studies strategic interaction in networks. We focus on games of strategic substitutes and strategic complements, and departing from previous literature, we do not assume particular functional forms on players' payoffs. By exploiting variational methods, we show that the uniqueness,...

In this paper we offer an explorative, mainly descriptive analysis about the multi-layered network of Hungarian firms. To conduct this study, we obtained access to firm-level supplier information, on which we could superimpose also the ownership background of all Hungarian companies. Our primary...

Size matters in banking. In this paper, we explore whether shocks originating at large banks affect the probability of distress of smaller banks and thus the stability of the banking system. Our analysis proceeds in two steps. In a first step, we follow Gabaix (2008a) and construct a measure of...