Contagion in Financial Networks

Gai, P., & Kapadia, S. (2010). Contagion in Financial Networks. Proceedings of the Royal Society A, 466(2120), 2401-2423.

Type

Journal article

Intellectual base

Primary research

Year

2010

DOI

10.1098/rspa.2009.0410

Link

https://doi.org/10.1098/rspa.2009.0410

Cited from

biology_ecology, chemistry_materials

Cited by

2 citations across 2 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Contagion
  • Finance: Distress spreads through counterparty obligations, common asset holdings, and funding dependencies — "financial contagion," in which one institution's failure infects connected institutions, and systemic risk rises sharply when the network of exposures crosses a critical connectivity.

    This sourceAnalytical model of distress propagation through counterparty exposures showing a robust-yet-fragile regime in which systemic risk rises sharply once the network of exposures crosses a critical connectivity.

• Percolation Threshold
  • Finance — default contagion across counterparties propagates system-wide when interbank-exposure density crosses threshold.

    This sourceDefault contagion across counterparties propagates system-wide when interbank-exposure connectivity crosses a threshold — the financial-network percolation instance.

Verification

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Registry ID ref:a7abb8800286 · see in the full table