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Bank Networks: Contagion, Systemic Risk and Prudential Policy

Aldasoro, Iñaki; Delli Gatti, Domenico; Faia, Ester - C.E.P.R. Discussion Papers - 2015

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of a...

Persistent link: https://www.econbiz.de/10011252622

The Diffusion of Microfinance

Banerjee, Abhijit; Chandrasekhar, Arun G; Duflo, Esther; … - C.E.P.R. Discussion Papers - 2012

We examine how participation in a microfinance program diffuses through social networks. We collected detailed demographic and social network data in 43 villages in South India before microfinance was introduced in those villages and then tracked eventual participation. We exploit exogenous...

Persistent link: https://www.econbiz.de/10011084550

The Economic Consequences of Social Network Structure

Jackson, Matthew O.; Rogers, Brian; Zenou, Yves - C.E.P.R. Discussion Papers - 2015

We survey the literatures on the economic consequences of the structure of social networks. We develop a taxonomy of 'macro' and 'micro' characteristics of social inter-action networks and discuss both the theoretical and empirical findings concerning the role of those characteristics in...

Persistent link: https://www.econbiz.de/10011165640

Production Networks, Geography and Firm Performance

Bernard, Andrew B.; Moxnes, Andreas; Saito, Yukiko U. - C.E.P.R. Discussion Papers - 2015

This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to...

Persistent link: https://www.econbiz.de/10011262884

Gossip: Identifying Central Individuals in a Social Network

Banerjee, Abhijit; Chandrasekhar, Arun G; Duflo, Esther; … - C.E.P.R. Discussion Papers - 2014

Can we identify the members of a community who are best- placed to diffuse information simply by asking a random sample of in- dividuals? We show that boundedly-rational individuals can, simply by tracking sources of gossip, identify those who are most central in a network according to...

Persistent link: https://www.econbiz.de/10011083579

Nestedness in Networks: A Theoretical Model and Some Applications

König, Michael; Tessone, Claudio J.; Zenou, Yves - C.E.P.R. Discussion Papers - 2012

We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are formed on the basis of agents’ centrality and have an exponentially distributed life time. We use stochastic stability to identify the networks to which the network formation...

Persistent link: https://www.econbiz.de/10011083433

A Dynamic Model of Network Formation with Strategic Interactions

König, Michael; Tessone, Claudio J.; Zenou, Yves - C.E.P.R. Discussion Papers - 2009

In order to understand the different characteristics observed in real-world networks, one needs to analyze how and why networks form, the impact of network structure on agents' outcomes, and the evolution of networks over time. For this purpose, we combine a network game introduced by Ballester...

Persistent link: https://www.econbiz.de/10008577811

From Assortative to Dissortative Networks: The Role of Capacity Constraints

König, Michael; Tessone, Claudio J.; Zenou, Yves - C.E.P.R. Discussion Papers - 2010

We consider a dynamic model of network formation where agents form and sever links based on the centrality of their potential partners. We show that the existence of capacity constrains in the amount of links an agent can maintain introduces a transition from dissortative to assortative...

Persistent link: https://www.econbiz.de/10008684691

Asset Commonality, Debt Maturity and Systemic Risk

Allen, Franklin; Babus, Ana; Carletti, Elena - C.E.P.R. Discussion Papers - 2011

quality of individual banks is opaque but can be inferred by creditors from aggregate signals about bank solvency. When bank …. This information contagion is more likely under clustered asset structures. In contrast, when bank debt is long …

Persistent link: https://www.econbiz.de/10009205064

"Lending by Example": Direct and Indirect Effects of Foreign Banks in Emerging Markets

Giannetti, Mariassunta; Ongena, Steven - C.E.P.R. Discussion Papers - 2008

Using a novel dataset that allows us to trace the primary bank relationships of a sample of mostly unlisted firms, we … explore which borrowers are able to benefit from foreign bank presence in emerging markets. Our results suggest that the … limits to financial integration are less tight than the static picture of bank-firm relationships implies. Even though …

Persistent link: https://www.econbiz.de/10005497713