Financial Networks: Contagion, Commitment, and Private Sector Bailouts

By Yaron Leitner. 2003

157 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/72d5e937de14a3ef27e7b110a29dcad341b5b034

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Citations in the corpus

Efficiency and Stability of a Financial Architecture with Too-Interconnected-to-Fail Institutions (2017, unknown): “Networks have also proved to be a useful analytical tool for studying financial contagion from a theoretical perspective (Allen and Gale, 2000; Leitner, 2005; Elliott, Golub, and Jackson, 2014; Cabrales, Gottardi, and Vega-Redondo, 2016; Acemoglu, Ozdaglar, and Tahbaz-Salehi, 2015; Glasserman and Yo”
Networks in Finance (2008, unknown): “Rees (1966), Granovetter (1995), Montgomery (1991).”
Systemic Risk in Financial Networks: A Survey (2020, unknown): “This means that linkages between banks not only spread shocks but also incentivize private sector bailouts, so that a more interconnected financial system can reduce systemic risk, and lead to more investments (Leitner (2005)).”
Financial Network Systemic Risk Contributions (2015, background): “A general empirical assessment of systemic relevance cannot build on the vast theoretical literature on financial network models and financial contagion, as such studies typically require detailed information on intra-bank asset and liability exposures (see, e.g., Allen and Gale, 2000; Freixas et al”
Fire Sales in a Model of Complexity (2009, background): “…Moore (1997a), Allen and Gale (2000), Freixas, Parigi, and Rochet (2000), Eisenberg and Noe (2001), Lagunoff and Schreft (2001), Dasgupta (2004), Leitner (2005), Cifuentes, Ferrucci, and Shin (2005), Rotemberg (2008), Allen, Babus, and Carletti (2010), Acemoglu et al. (2012), and Zawadowski…”
A Network Analysis of Global Banking:1978-2009 (2011, unknown): “Using Allen and Gale’s setup, Leitner (2005) shows that interlinkages can be desirable even if they act as conduits for contagion, because they can motivate banks to bail out one another provided that they can coordinate to do so when the threat of contagion arises.”
Contagion in financial networks (2010, background): “Leitner (2005) suggests that linkages which create the threat of contagion may be optimal.”
Transmission channels of systemic risk and contagion in the European financial network (2015, unknown): “Allen and Gale (2004), Leitner (2005), Allen and Carletti (2006) and Gai and Kappadia (2010) find that banking systems respond differently in systemic risk due to changes on the degree of interconnectedness, idiosyncratic and aggregate liquidity shocks in the interbank market.”
Interbank Tiering and Money Center Banks (2010, unknown): “In a related model, Leitner (2005) demonstrates that interbank deposits help induce banks to bail each other out.”
Where the Risks Lie: A Survey on Systemic Risk (2017, unknown): “Leitner (2005) shows that banks can voluntarily form bilateral links and expose themselves to contagion risk in”
Failure and Rescue in an Interbank Network (2013, unknown): “The role of the regulator in our paper is therefore very similar to the one considered by Leitner (2005).”