Not logged in.
Quick Search - Contribution
Contribution Details
Type | Journal Article |
Scope | Discipline-based scholarship |
Title | Liaisons Dangereuses: Increasing Connectivity, Risk Sharing, and Systemic Risk |
Organization Unit | |
Authors |
|
Item Subtype | Original Work |
Refereed | Yes |
Status | Published in final form |
Language |
|
Journal Title | Journal of Economic Dynamics and Control |
Publisher | Elsevier |
Geographical Reach | international |
ISSN | 0165-1889 |
Volume | 36 |
Number | 8 |
Page Range | 1121 - 1141 |
Date | 2012 |
Abstract Text | The recent financial crisis poses the challenge to understand how systemic risk arises endogenously and what architecture can make the financial system more resilient to global crises. This paper shows that a financial network can be most resilient for intermediate levels of risk diversification, and not when this is maximal, as generally thought so far. This finding holds in the presence of the financial accelerator, i.e. when negative variations in the financial robustness of an agent tend to persist in time because they have adverse effects on the agent's subsequent performance through the reaction of the agent's counterparties. |
Free access at | Related URL |
Related URLs | |
Digital Object Identifier | 10.1016/j.jedc.2012.04.001 |
Other Identification Number | merlin-id:10140 |
Export |
BibTeX
EP3 XML (ZORA) |