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Financial Networks and Contagion

Authors
Matthew Elliott, Benjamin Golub, Matthew O. Jackson
Year
2014
Venue
American Economic Review, 104(10):3115-53
Category
Financial Networks & Systemic Risk
Cite status
Verified
Domains
liquidity networks
Notes
Integration (dependence) and diversification (counterparty count) have **non-monotonic** effects on cascade size — the canonical theorem for a network of liquidity/credit exposures.
Relevance to ƒxyz
the topology theory under the "member-owned liquidity network" noun; the counterparty-cap design lever.
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