Table of Contents Author Guidelines Submit a Manuscript
Complexity
Volume 2017 (2017), Article ID 9895632, 16 pages
https://doi.org/10.1155/2017/9895632
Research Article

Partially Overlapping Ownership and Contagion in Financial Networks

1School of Business and Economics, Indiana University Northwest, 3400 Broadway, Gary, IN 46408, USA
2Department of Mathematics and Actuarial Science, Indiana University Northwest, 3400 Broadway, Gary, IN 46408, USA

Correspondence should be addressed to Micah Pollak; ude.nui@kallopm

Received 27 July 2017; Accepted 8 October 2017; Published 6 November 2017

Academic Editor: Ahmet Sensoy

Copyright © 2017 Micah Pollak and Yuanying Guan. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Linked References

  1. M. Chinazzi and G. Fagiolo, “Systemic risk, contagion, and financial networks: a survey,” SSRN Electronic Journal, p. 57, 2015. View at Publisher · View at Google Scholar
  2. F. Caccioli, M. Shrestha, C. Moore, and J. D. Farmer, “Stability analysis of financial contagion due to overlapping portfolios,” Journal of Banking & Finance, vol. 46, no. 1, pp. 233–245, 2014. View at Publisher · View at Google Scholar · View at Scopus
  3. A. Sensoy, “Firm size, ownership structure, and systematic liquidity risk: the case of an emerging market,” Journal of Financial Stability, vol. 31, pp. 62–80, 2017. View at Publisher · View at Google Scholar
  4. F. Caccioli, J. D. Farmer, N. Foti, and D. Rockmore, “Overlapping portfolios, contagion, and financial stability,” Journal of Economic Dynamics & Control, vol. 51, pp. 50–63, 2015. View at Publisher · View at Google Scholar · View at MathSciNet
  5. S. Poledna, J. L. Molina-Borboa, S. Martínez-Jaramillo, M. van der Leij, and S. Thurner, “The multi-layer network nature of systemic risk and its implications for the costs of financial crises,” Journal of Financial Stability, vol. 20, pp. 70–81, 2015. View at Publisher · View at Google Scholar · View at Scopus
  6. M. Boss, H. Elsinger, M. Summer, and S. Thurner, “Network topology of the interbank market,” Quantitative Finance, vol. 4, no. 6, pp. 677–684, 2004. View at Publisher · View at Google Scholar · View at Scopus
  7. K. Soramäki, M. L. Bech, J. Arnold, R. J. Glass, and W. E. Beyeler, “The topology of interbank payment flows,” Physica A: Statistical Mechanics and its Applications, vol. 379, no. 1, pp. 317–333, 2007. View at Publisher · View at Google Scholar · View at Scopus
  8. R. Cont, A. Moussa, and E. B. Santos, “Network structure and systemic risk in banking systems,” Handbook of Systemic Risk, pp. 327–368, 2013, Network structure and systemic risk in banking systems, Handbook of Systemic Risk. View at Google Scholar
  9. D. in't Veld and I. van Lelyveld, “Finding the core: network structure in interbank markets,” Journal of Banking & Finance, vol. 49, pp. 27–40, 2014. View at Publisher · View at Google Scholar · View at Scopus
  10. D. Fricke and T. Lux, “Core–periphery structure in the overnight money market: evidence from the e-MID trading platform,” Computational Economics, vol. 45, no. 3, pp. 359–395, 2014. View at Publisher · View at Google Scholar · View at Scopus
  11. B. Craig and G. Von Peter, “Interbank tiering and money center banks,” Journal of Financial Intermediation, vol. 23, no. 3, pp. 322–347, 2014. View at Publisher · View at Google Scholar · View at Scopus
  12. S. Langfield, Z. Liu, and T. Ota, “Mapping the UK interbank system,” Journal of Banking & Finance, vol. 45, no. 1, pp. 288–303, 2014. View at Publisher · View at Google Scholar · View at Scopus
  13. T. C. Silva, S. R. S. de Souza, and B. M. Tabak, “Network structure analysis of the Brazilian interbank market,” Emerging Markets Review, vol. 26, pp. 130–152, 2016. View at Publisher · View at Google Scholar · View at Scopus
  14. M. P. Solis-Montes, “The structure of the Mexican interbank market,” Banco de México, 2013. View at Google Scholar
  15. T. Lux, “Emergence of a core-periphery structure in a simple dynamic model of the interbank market,” Journal of Economic Dynamics & Control, vol. 52, pp. A11–A23, 2015. View at Publisher · View at Google Scholar · View at MathSciNet
  16. M. van der Leij, D. in’t Veld, and C. Hommes, The formation of a core periphery structure in heterogeneous financial networks, De Nederlandsche Bank Working Paper No. 528.
  17. A. Galeotti, C. Ghiglino, and S. Goyal, “Financial linkages, portfolio choice and systemic risk,” 2016, https://doi.org/10.17863/CAM.4951.
  18. R. McCord and E. S. Prescott, “The financial crisis, the collapse of bank entry, and changes in the size distribution of banks,” FRB Richmond Economic Quarterly, vol. 100, pp. 23–50, 2014. View at Google Scholar
  19. M. Kowalik, T. Davig, C. S. Morris, and K. Regehr, “Bank consolidation and merger activity following the crisis,” Economic Review-Federal Reserve Bank of Kansas City, pp. 31–49, 2015. View at Google Scholar
  20. P. Gai and S. Kapadia, “Contagion in financial networks,” Proceedings of the Royal Society A Mathematical, Physical and Engineering Sciences, vol. 466, no. 2120, pp. 2401–2423, 2010. View at Publisher · View at Google Scholar · View at MathSciNet · View at Scopus
  21. Y. Guan and M. Pollak, “Contagion in heterogeneous financial networks,” Advances in Complex Systems, vol. 19, no. 1-2, Article ID 1650001, p. 25, 2016. View at Publisher · View at Google Scholar · View at MathSciNet
  22. F. Caccioli, T. A. Catanach, and J. D. Farmer, “Heterogeneity, correlations and financial contagion,” Advances in Complex Systems, vol. 15, no. supplement 2, Article ID 1250058, p. 15, 2012. View at Publisher · View at Google Scholar · View at MathSciNet
  23. B. Bollobás, C. Borgs, J. Chayes, and O. Riordan, “Directed scale free graphs,” in Proceedings of the Fourteenth Annual ACM-SIAM Symposium on Discrete Algorithms, pp. 132–139, 2003.