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
- 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.