Systemic Risk and Stability in Financial Networks
We provide a framework for studying the relationship between the financial network architecture and the likelihood of systemic failures due to contagion of counterparty risk. We show that financial contagion exhibits a form of phase transition as interbank connections increase: as long as the magnit...
| Main Authors: | , , |
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| Format: | Working Paper |
| Published: |
Cambridge, MA: Department of Economics, massachusetts Institute of Technology
2013
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/77606 |