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Complex Financial Networks and Systemic Risk: A Review

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Listed author(s):
  • Spiros Bougheas
  • Alan Kirman

Abstract

In this paper we review recent advances in financial economics in relation to the measurement of systemic risk. We start by reviewing studies that apply traditional measures of risk to financial institutions. However, the main focus of the review is on studies that use network analysis paying special attention to those that apply complex analysis techniques. Applications of these techniques for the analysis and pricing of systemic risk has already provided significant benefits at least at the conceptual level but it also looks very promising from a practical point of view.

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File URL: http://www.nottingham.ac.uk/cfcm/documents/papers/cfcm-2014-04.pdf
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Paper provided by University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM) in its series Discussion Papers with number 2014/04.

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Date of creation: 2014
Handle: RePEc:not:notcfc:14/04
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School of Economics University of Nottingham University Park Nottingham NG7 2RD

Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/cfcm/index.aspx

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Keywords: Comlex Financial Systems; Networks; Systemic Risk;

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Find related papers by JEL classification:
  • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
  • G20 - Financial Economics - - Financial Institutions and Services - - - General

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Cited by:

  1. Sartori, Martina & Schiavo, Stefano, 2014. "Virtual water trade and country vulnerability: A network perspective," MPRA Paper 59210, University Library of Munich, Germany.
  2. Sprios Bougheas & Alan Kirman, 2015. "Systemic Risk and the Optimal Seniority Structure of Banking Liabilities," Discussion Papers 2015/15, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
  3. Sartori, Martina & Schiavo, Stefano, 2015. "Connected we stand: A network perspective on trade and global food security," Food Policy, Elsevier, vol. 57(C), pages 114-127.
  4. Spiros Bougheas & Alan Kirman, 2015. "Bank Insolvencies, Priority Claims and Systemic Risk," Discussion Papers 2015/08, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).

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