Online Appendix: Financial Networks and Contagion
نویسندگان
چکیده
In this section, we present a three-organization example to illustrate more about how the A and the C matrices can differ. Recall our simple example from Section IG (see Figure 1). There are two organizations, i = 1, 2, each of which has a 50% stake in the other organization. The associated crossholdings matrix C and the dependency matrix A are as follows. (Recall that Ĉii is equal to 1 minus the sum of the entries in column i of C.)
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