Many firms, banks, or other economic agents embedded in a network of codependencies
may experience a contemporaneous, sharp drop in functionality or productivity following a …

I review the recent literature that applies search-and-matching theory to the study of over-the-
counter financial markets. I formulate and solve a simple model to illustrate the typical …

We review heterogeneous agent models of financial stability and their application in stress
tests. In contrast to the mainstream approach, which relies heavily on the rational …

This paper studies a model of firms with endogenous bilateral exposures and government
bailouts. It is shown that the anticipation of bailouts makes firms less concerned with the …

This article studies the impact of intermediaries' disappearance on firms' access to the
sterling money market during the first globalization era of 1880-1914. We propose a new …

We develop a dynamic model of a multi-asset over-the-counter (OTC) market that operates
via search and bargaining and empirically test its implications regarding liquidity in the cross …

Nowadays, more and more granular data are being collected. The 2008–2010 crisis has
shown that authorities were missing crucial information for accurately identifying risks in the …

Re-use of collateral is prevalent in the collateralized debt markets. Lender default naturally
arises with re-use of collateral, because a bankrupt lender cannot return collateral to …

We study a model of non-cooperative multi-layer network formation where players have to
choose among two platforms (layers) but may-at an additional cost-also use both. Players …

Dealers can choose between two intermediation methods: providing immediacy to
customers using their own inventory and making matches between customers' order flows …