The Price of Complexity in Financial Networks
Financial institutions form multi-layer networks of contracts among each other and exposures to common assets. As a result, the default probability of one institution depends on the default probability of all the other institutions in the network. Here, we show how small errors on the knowledge of t...
| Main Authors: | , , , , |
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| Formato: | Journal article |
| Publicado em: |
National Academy of Sciences
2016
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