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On the influence of network structure on the resilience and losses of financial systems

Lorenzo Zino et al.

Journal of Mechanism and Institution Design2025https://doi.org/10.22574/jmid.2025.12.004article
AJG 1
Weight
0.50

What the paper says

We investigate resilience to defaults in financial networks, where nodes hold shares in a common set of external assets. Price fluctuations in these assets can trigger shareholder defaults, propagating through the network and causing default cascades. In particular, we conduct a series of numerical experiments to elucidate the influence of the network structure on the financial system. Our investigation explores the effects of sparsity versus connectivity, clustering, and liability heterogeneity among financial institutions. We also examine the impact of diversification and asset investment heterogeneity.

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https://doi.org/https://doi.org/10.22574/jmid.2025.12.004

Or copy a formatted citation

@article{lorenzo2025,
  title        = {{On the influence of network structure on the resilience and losses of financial systems}},
  author       = {Lorenzo Zino et al.},
  journal      = {Journal of Mechanism and Institution Design},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.22574/jmid.2025.12.004},
}

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On the influence of network structure on the resilience and losses of financial systems

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.