How likely is contagion in financial networks?

Interconnections among financial institutions create potential channels for contagion and amplification of shocks to the financial system. We propose precise definitions of these concepts and analyze their magnitude. Contagion occurs when a shock to the assets of a single firm causes other firms t...

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Bibliographic Details
Main Authors: Young, H, Glasserman, P
Format: Working paper
Published: University of Oxford 2013