of the network topology. Moreover, using the calibrated model, we define a fragility index that measures the ability of … the system to absorb exogenous shocks. We find that the fragility of the production network has increased from 1995 to …

collateral create fragility. A dealer stands between a borrower and a financier. The dealer borrows from the financier to fund … fragility in the chain. The arrival of news about the value of the revenue of the intermediation activity further increases … fragility. This fragility channel generates a premium for safe or opaque collateral. The environment considered in our model …