This paper tests competing theories of interbank lending using 43 quarters (2002-2012) of confidential data on the German banking sector and interbank market. It shows that banks use the interbank market for liquidity co-insurance as traditionally assumed. However, the importance of the...

We discuss models and data of crowd disasters, crime, terrorism, war and disease spreading to show that conventional recipes, such as deterrence strategies, are often not effective and sufficient to contain them. Many common approaches do not provide a good picture of the actual system behavior,...