Panic and propagation in 1873: A network analytic approach

We assess systemic risk in the U.S. banking system before and after Panic of 1873, using a combination linear programming computational optimization to estimate interbank network. impose liquidity shocks resembling those find network captures distribution deposits year later. The predicts banks likely panic crisis, see their balance sheets weaken crisis more than others. results shed light on nature regional pattern withdrawals classic 19th-century financial crisis.