FINANCIAL CONTAGION THROUGH CAPITAL CONNECTIONS: A MODEL OF THE ORIGIN AND SPREAD OF BANK PANICS

By Amil Dasgupta. 2004

333 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/0dab198d757853a09b84c5e8833379b8d305106d

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Citations in the corpus

Global Games: Theory and Applications (2003, neutral): “…down version of this model, where alternative assumptions on the investment technology and utility functions imply that payoffs reduce to those of the linear example in Section 2.1 [see also Boonprakaikawe and Ghosal (2000), Dasgupta (2000b), Goldstein (2000), and Rochet and Vives (2000)] .”
Central bank digital currency: Central banking for all? (2020, neutral): “For related ideas, check Dasgupta (2004). Recall that the central bank’s investment in the long asset through investment banks exposes the central bank to runs if the long asset is risky.”
Cross-Border Banking in Europe: Implications for Financial Stability and Macroeconomic Policies (2011, background): “This, in turn, will cause debtors at other banks that have invested in this country to update their beliefs about the health of their banks and may result in runs at these banks as well (eg, see Chari and Jagannathan, 1988, Flannery, 1996, Aghion, Bolton, Dewatripont, 2000, and Dasgupta, 2004).”
Networks in Finance (2008, background): “Moreover, a number of empirical studies point out that the existing network of interpersonal relationships shapes the formation of the network of risk-sharing agreements (Fafchamps and Lund, 2003; de Weerdt, 2004; Fafchamps and Gubert, 2006). Despite the evidence, there are only a few papers that ap”
Strategic Complementarities and the Twin Crises (2005, neutral): “erature. Other applications in this literature include Dasgupta (2004) , Goldstein and Pauzner (2004) and Rochet and Vives (2004).”
Systemic Risk and Stability in Financial Networks (2015, background): “Such a normalization guarantees that any variation in the fragility of the system is simply due to how interbank liabilities are distributed, while abstracting away from effects that are driven by other features of the financial network, such as size or leverage heterogeneity across banks.14 To…”
Too Interconnected to Fail: A Survey of the Interbank Networks Literature (2015, background): “Network studies have analyzed these problems, for example by studying bank runs (Dasgupta, 2004), short-term lending (Battiston et al.”
Interbank Contagion at Work: Evidence from a Natural Experiment (2011, neutral): “Apart from exposure to the failed bank leading to large deposit withdrawals, theoretical literature (Allen and Gale 2000; Dasgupta 2004; Brusco and Castiglionesi 2007) also points toward nonlinearities in the effect of exposure on large deposit withdrawals and, possi bly, on deposit growth.”
Interbank Contagion in the Dutch Banking Sector (2004, methodology): “In a model based on that of Diamond and Dybvig (1983), Dasgupta (2004) investigates the eﬀect of a signal about a bank’s health on customers’ expectations and shows that contagion mainly runs from debtor banks to creditor banks.”
Transparency in the Financial System: Rollover Risk and Crises (2014, positive): “From a theoretical point view, rollover risk can be micro-founded through depositors’ demands for insurance against idiosyncratic liquidity shocks as in Diamond and Dybvig (1983). Goldstein and Pauzner (2005) show that while demand deposit contracts, i.”
Transmission channels of systemic risk and contagion in the European financial network (2015, neutral): “Interestingly, Dasgupta (2005) examines how linkages among banks can be a source of contagious breakdowns, and finds the way depositors react when they receive a negative signal about banks’ fundamentals. On the search for optimal financial network the size of each national banking sector play a dom”
Payoff complementarities and financial fragility: Evidence from mutual fund outflows $ (2010, methodology): “To illustrate the effect of large investors, we conduct an exercise similar to that in Corsetti, Dasgupta, Morris, and Shin (2004) and introduce one large investor into the model of the previous subsection.”
Complementarities and Games: New Developments (2005, background): “• To consider dynamic settings modeling, for example, contagion ( Dasgupta (2003) ) and dynamic speculative attacks (Chamley (2003)).”
Simulation methods to assess the danger of contagion in interbank markets (2011, background): “Portfolio rebalancing Kodres and Pritsker (2002) Fear of direct effects Dasgupta (2004), Iyer and”
The formation of financial networks: XXX (2013, background): “All remaining errors are my own. yAddress: Erasmus University Rotterdam, P.O. Box 1738, 3000 DR Rotterdam, The Netherlands; email: babus@tinbergen.nl”