Inhomogeneous Financial Networks and Contagious Links
提出了一个检验金融网络中大规模级联可能性的框架，该框架允许传染性链接的出现概率依赖于银行特征，并给出了级联规模的上界及可检验条件。
We propose a framework for testing the possibility of large cascades in financial networks. This framework accommodates a variety of specifications for the probabilities of emergence of “contagious links” conditional on a macroeconomic shock, where a contagious link leads to the default of a bank following the default of its counterparty. Under general contagion mechanisms and incomplete information, the financial network is modeled as an inhomogeneous random graph, where the conditional probabilities of having contagious links depend on banks’ characteristics. We give different bounds on the size of the cascade through contagious links and derive testable conditions for this cascade to be small.