Risk-Sharing and Contagion in Networks
43 mins 51 secs,
222.89 MB,
WebM
640x360,
29.97 fps,
44100 Hz,
693.99 kbits/sec
Share this media item:
Embed this media item:
Embed this media item:
About this item
| Description: |
Gottardi, P (European University Institute)
Thursday 28 August 2014, 09:45-10:15 |
|---|
| Created: | 2014-08-29 12:08 |
|---|---|
| Collection: | Systemic Risk: Mathematical Modelling and Interdisciplinary Approaches |
| Publisher: | Isaac Newton Institute |
| Copyright: | Gottardi, P |
| Language: | eng (English) |
| Distribution: |
World
(downloadable)
|
| Explicit content: | No |
| Aspect Ratio: | 16:9 |
| Screencast: | No |
| Bumper: | UCS Default |
| Trailer: | UCS Default |
| Abstract: | Joint with A. Cabrales & F. Vega-Redondo
We investigate the trade-off between the risk-sharing gains enjoyed by more interconnected firms and the costs resulting from an increased risk exposure. We find that when the shock distribution displays "fat tails," extreme segmentation into small components is optimal, while minimal segmentation and high density of connections are optimal when the distribution exhibits \thin" tails. For less regular distributions, intermediate degrees of segmentation and sparser connections are optimal. Also, if firms are heterogeneous, optimality requires perfect assortativity in a component. In general, however, a conflict arises between efficiency and pairwise stability, due to a "size externality" not internalized by firms. |
|---|---|
Available Formats
| Format | Quality | Bitrate | Size | |||
|---|---|---|---|---|---|---|
| MPEG-4 Video | 640x360 | 1.92 Mbits/sec | 634.30 MB | View | Download | |
| WebM * | 640x360 | 693.99 kbits/sec | 222.89 MB | View | Download | |
| iPod Video | 480x270 | 522.22 kbits/sec | 167.66 MB | View | Download | |
| MP3 | 44100 Hz | 249.74 kbits/sec | 80.27 MB | Listen | Download | |
| Auto | (Allows browser to choose a format it supports) | |||||