The physics of financial networks
As the total value of the global financial market outgrew the value of the real economy,
financial institutions created a global web of interactions that embodies systemic risks …
financial institutions created a global web of interactions that embodies systemic risks …
Allocating stimulus checks in times of crisis
We study the problem of financial assistance (bailouts, stimulus payments, or subsidy
allocations) in a network where individuals experience income shocks. These questions are …
allocations) in a network where individuals experience income shocks. These questions are …
Default ambiguity: finding the best solution to the clearing problem
We study financial networks with debt contracts and credit default swaps between specific
pairs of banks. Given such a financial system, we want to decide which of the banks are in …
pairs of banks. Given such a financial system, we want to decide which of the banks are in …
[HTML][HTML] Financial networks with singleton liability priorities
Financial networks model debt obligations between economic firms. Computational and
game-theoretic analyses of these networks have been recent focus of the literature. The …
game-theoretic analyses of these networks have been recent focus of the literature. The …
Debt swap** for risk mitigation in financial networks
We study financial networks where banks are connected by debt contracts. We consider the
operation of debt swap** when two creditor banks decide to exchange an incoming …
operation of debt swap** when two creditor banks decide to exchange an incoming …
[HTML][HTML] Payment scheduling in the interval debt model
The network-based study of financial systems has received considerable attention in recent
years but has seldom explicitly incorporated the dynamic aspects of such systems. We …
years but has seldom explicitly incorporated the dynamic aspects of such systems. We …
Seniorities and minimal clearing in financial network games
M Hoefer, L Wilhelmi - International Symposium on Algorithmic Game …, 2022 - Springer
Financial network games model payment incentives in the context of networked liabilities. In
this paper, we advance the understanding of incentives in financial networks in two …
this paper, we advance the understanding of incentives in financial networks in two …
The complexity of debt swap**
H Froese, M Hoefer, L Wilhelmi - arxiv preprint arxiv:2302.11250, 2023 - arxiv.org
A debt swap is an elementary edge swap in a directed, weighted graph, where two edges
with the same weight swap their targets. Debt swaps are a natural and appealing operation …
with the same weight swap their targets. Debt swaps are a natural and appealing operation …
Equilibria and Convergence in Fire Sale Games
The complex interactions between algorithmic trading agents can have a severe influence
on the functioning of our economy, as witnessed by recent banking crises and trading …
on the functioning of our economy, as witnessed by recent banking crises and trading …
Optimal Resource Allocation for Remediating Networked Contagions
We study the problem of designing intervention policies for minimizing failures in dynamic
networked contagion settings using the Eisenberg-Noe model of contagion. Our controller …
networked contagion settings using the Eisenberg-Noe model of contagion. Our controller …