This project looks at the network formed by contractual relations between firms. Special emphasis is placed on interbank loan markets and the potential role that these play during financial crises. Both theoretical and empirical questions are considered. The theoretical stream examines the mathematical nature of such loan networks, their representation in accounting systems and the implications of representing the balance sheet identity of all firms simultaneously in an equation system. The empirical stream looks at the role of network effects in real-world markets and financial systems, including whether and how regulation can be used to improve the resilience of these systems.
People: Christoph Siebenbrunner