Contagion in Financial Networks¶
Gai, P., & Kapadia, S. (2010). Contagion in Financial Networks. Proceedings of the Royal Society A, 466(2120), 2401-2423.
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.
Supported in partVerified against the publisher's abstract
The abstract backs a robust-yet-fragile financial-network contagion model, but it names no counterparty/asset-holding/funding channels and no critical-connectivity threshold.
“Our findings suggest that financial systems exhibit a robust-yet-fragile tendency: while the probability of contagion may be low, the effects can be extremely widespread when problems occur.”
- 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.
- 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.
Supported in partVerified against the publisher's abstract
The abstract backs the frame — contagion in financial networks can be extremely widespread — but states no interbank-exposure density threshold, so it cannot carry the threshold clause.
“while the probability of contagion may be low, the effects can be extremely widespread when problems occur”
- Finance — default contagion across counterparties propagates system-wide when interbank-exposure density crosses threshold.
Verification¶
Does it exist? Confirmed. This work's DOI resolves to a registered record, which fixes its identity. That is all it fixes.
Does it back the claim? Read against the text for 2 of 2 citations: 2 supported in part. Each verdict is shown under its citation below, with what in the work backs the sentence.
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Registry ID ref:a7abb8800286 · see in the full table