55 citations · 137 across the 5 of their papers we have counts for
Showing 2016Show all
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econ.GN2016★ 23 cited
Incentivizing Resilience in Financial Networks
Matt V. Leduc, Stefan Thurner
When banks extend loans to each other, they generate a negative externality in the form of systemic risk. They create a network of interbank exposures by which they expose other ba…
q-fin.RM2016★ 10 cited
Systemic Risk Management in Financial Networks with Credit Default Swaps
Matt V. Leduc, Sebastian Poledna, Stefan Thurner
We study insolvency cascades in an interbank system when banks are allowed to insure their loans with credit default swaps (CDS) sold by other banks. We show that, by properly shif…