Systemic Risk and Stability in Financial Networks

• 成果类型: Article
• 署名作者: Acemoglu, Daron; Ozdaglar, Asuman; Tahbaz-Salehi, Alireza
• 署名单位: Massachusetts Institute of Technology (MIT); Massachusetts Institute of Technology (MIT); Columbia University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20130456
• 发表日期: 2015
• 页码: 564-608
• 关键词: contagion; liquidity; BANK; PRIVATE; MODEL

摘要

This paper argues that the extent of financial contagion exhibits a form of phase transition: as long as the magnitude of negative shocks affecting financial institutions are sufficiently small, a more densely connected financial network (corresponding to a more diversified pattern of interbank liabilities) enhances financial stability. However, beyond a certain point, dense interconnections serve as a mechanism for the propagation of shocks, leading to a more fragile financial system. Our results thus highlight that the same factors that contribute to resilience under certain conditions may function as significant sources of systemic risk under others.