Network economics is a fast growing area of study, with a lot of potential for addressing a wide variety of socio-economic phenomena. Networks literally permeate our social and economic lives. The unemployed find jobs using the information and assistance of their friends and relatives. Consumers...

The unraveling argument says that when a rm may produce dierent qualities and quality is unknown to consumers, the rm has an incentive to disclose the private information as in any pool of rms there is a best quality rm and this rm has an incentive to disclose. Recent literature has established...

This paper argues that different types of trade liberalization { multilateral versus regional { may lead to different R&D and productivity levels of firms. Trade agreements between countries are modelled with a network: nodes represent countries and a link between the nodes indicates the...

This paper studies the risk and potential impact of system-wide defaults in a tiered banking network, where a small group of head institutions has many credit linkages with other banks, while the majority of banks have only a few links. A network is random and displays a given distribution of...

This paper studies systemic risk and the scale of systemic breakdown in the frequently observed tiered banking system. The banking network is constructed from a number of banks which are linked by interbank exposures with a certain predefined probability. In this framework, the tiered structure...

Systemic risk and the scale of systemic breakdown in the banking system are the key concern for central banks charged with safeguarding overall financial stability. This paper focuses on the risk and potential impact of system-wide defaults in the frequently observed ”tiered” banking system,...