We study bankruptcy problems in financial networks the presence of general laws. The set clearing payment matrices is shown to be a lattice, which guarantees existence greatest and least payment. Multiplicity both theoretical practical concern. present new condition for uniqueness that generalizes all existing conditions proposed literature. Our depends on decomposition network into strongly co...

There has been an increasing attention on the influences online financial information has on the financial markets. In the meanwhile, the volatility of trading volumes, just as the volatility of stock returns, has an inseparable association with financial risks. It has been considered that there might exist some direct or indirect correlations between online financial information volumes and fi...

What are the dominant stocks which drive the correlations present among stocks traded in a stock market? Can a correlation analysis provide an answer to this question? In the past, correlation based networks have been proposed as a tool to uncover the underlying backbone of the market. Correlation based networks represent the stocks and their relationships, which are then investigated using dif...

We provide a framework to study the formation of financial networks and investigate the interplay between the banks’ lending incentives and the emergence of systemic risk. We show that under natural contracting assumptions, banks fail to internalize the implications of their lending decisions for the banks with whom they are not directly contracting, thus establishing the presence of a financia...