Financial Law and Risk Control
Financial Contagion
Franklin Allen and Douglas Gale
- Year
- 2000
- Venue
- Journal of Political Economy
- Level
- Advanced
Summary
Models contagion through interregional claims among banks that share liquidity risk. The paper shows how a local liquidity shock can propagate through an incomplete network of claims and makes network structure central to the legal design of interbank markets and systemic safeguards.
Citation
Franklin Allen and Douglas Gale. "Financial Contagion." Journal of Political Economy, 2000.
DOI: 10.1086/262109
BibTeX
@article{Allen2000Financial,
title = {Financial Contagion},
author = {Franklin Allen and Douglas Gale},
year = {2000},
journal = {Journal of Political Economy},
doi = {10.1086/262109},
url = {https://doi.org/10.1086/262109}
}