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Tamaño y Riesgo en los Mercados Financieros
[Size and Risk in the Finanzal Markets]

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  • Estrada, Fernando

Abstract

This paper examines relationships between size and risk in financial markets. Based on the work of Makridakis / Taleb [2009] and Taleb / Tapiero [2009], presents the problems of excessive risk and imbalances caused by the size of firms. Markets mixed on firm growth traps externalities can influence risk, high-cost for the commons. A policy of regulation and control in markets, while necessary, are still insufficient in economies with little institutional support. Externalities of risk and firm size categories are fundamental to understanding the present financial crisis since the economies of scale.

Suggested Citation

  • Estrada, Fernando, 2009. "Tamaño y Riesgo en los Mercados Financieros [Size and Risk in the Finanzal Markets]," MPRA Paper 19267, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19267
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    File URL: https://mpra.ub.uni-muenchen.de/19267/1/MPRA_paper_19267.pdf
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    References listed on IDEAS

    as
    1. Fujiwara, Yoshi, 2004. "Zipf law in firms bankruptcy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 337(1), pages 219-230.
    2. Makridakis, Spyros & Taleb, Nassim, 2009. "Decision making and planning under low levels of predictability," International Journal of Forecasting, Elsevier, vol. 25(4), pages 716-733, October.
    3. Saito, Yukiko Umeno & Watanabe, Tsutomu & Iwamura, Mitsuru, 2007. "Do larger firms have more interfirm relationships?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 383(1), pages 158-163.
    4. Robert M. May & Simon A. Levin & George Sugihara, 2008. "Ecology for bankers," Nature, Nature, vol. 451(7181), pages 893-894, February.
    5. Tapiero, Charles S., 2007. "Consumers risk and quality control in a collaborative supply chain," European Journal of Operational Research, Elsevier, vol. 182(2), pages 683-694, October.
    6. Goldenberg, J & Libai, B & Solomon, S & Jan, N & Stauffer, D, 2000. "Marketing percolation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 284(1), pages 335-347.
    7. Konstantin Kogan & Charles S. Tapiero, 2007. "Supply Chain Games: Operations Management And Risk Valuation," International Series in Operations Research and Management Science, Springer, number 978-0-387-72776-9, September.
    8. Bouchaud,Jean-Philippe & Potters,Marc, 2003. "Theory of Financial Risk and Derivative Pricing," Cambridge Books, Cambridge University Press, number 9780521819169.
    9. Aleksiejuk, Agata & Hołyst, Janusz A., 2001. "A simple model of bank bankruptcies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 299(1), pages 198-204.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Estrada, Fernando, 2014. "Rescue costs and financial risk," MPRA Paper 59066, University Library of Munich, Germany.
    2. Estrada, Fernando, 2014. "Rescate y costos del riesgo financiero [Rescue costs and financial risk]," MPRA Paper 58848, University Library of Munich, Germany.
    3. Estrada, Fernando, 2010. "Información y persuasión en los mercados financieros [Information and persuasion in financial markets]," MPRA Paper 20158, University Library of Munich, Germany.

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    More about this item

    Keywords

    Financial Markets; Economic Crisis; Size; Risk; Economies of Scale;
    All these keywords.

    JEL classification:

    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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