Publications

The Centre has a regular discussion paper series dedicated to academic research, as well as a special paper series focused on policy analysis. In addition, affiliated researchers publish a variety of books, reports and opinion pieces.

Discussion Papers
Jul 2015
DP 42
Christoph Aymanns, Fabio Caccioli, J. Doyne Farmer and Vincent W.C. Tan
Effective risk control must make a tradeoff between the microprudential risk of exogenous shocks to individual institutions and the macroprudential risks caused by their systemic interactions. We investigate a simple dynamical model for...
Discussion Papers
Jul 2015
DP 41
Rafael Matta and Enrico Perotti
We analyse bank runs under fundamental and asset liquidity risk, adopting a realistic description of bank default. We obtain an unique run equilibrium, even as fundamental risk becomes arbitrarily small. When safe returns are securitized and pledged...
Discussion Papers
Jul 2015
DP 40
Mike Burkart and Amil Dasgupta
We develop a dual-layered agency model to study blockholder monitoring by activist funds that compete for investor flow. Competition for flow affects the manner in which activist hedge funds govern as blockholders. In particular, funds inflate short...
Discussion Papers
Jun 2015
DP 39
Rui Gong, Frank Page and Myrna Wooders
We model the structure and strategy of social interactions prevailing at any point in time as a directed network and we address the following open question in the theory of social and economic network formation: given the rules of network and...
Opinion Pieces
Jun 2015
Jeffrey M Chwieroth, Andrew Walter and Cohen R. Simpson
How would a unilateral Greek default affect politics and policy elsewhere in Europe? A Greek default is more likely to strengthen voter support across southern Europe for existing policies than to precipitate a new wave of defaults. This effect...
Opinion Pieces
Jun 2015
Jon Danielsson and Ásdís Kristjánsdóttir
Iceland has just announced it is getting rid of its capital controls. This column argues that the government’s plan is a credible, efficient and fair plan to lift the costly and misguided controls.
Opinion Pieces
Jun 2015
Jeffrey M Chwieroth, Cohen R. Simpson and Andrew Walter
Many fear that a Greek default would lead voters elsewhere in Europe to favour default over austerity. This column argues that it is more likely to have the opposite effect. Network interdependencies among countries affect the domestic politics of...
Discussion Papers
May 2015
DP 38
Daniel Beunza and Yuval Millo
The recent automation of the American stock market has replaced floor intermediaries with trading algorithms, calling into question the sociological claim that markets are structured by networks of intermediaries. Our study examines the social...
Discussion Papers
Apr 2015
DP 37
Andrew Baker
Macroprudential regulation, which has emerged as a new departure in financial regulation (albeit with a longer heritage), since the financial crash, is in a fluid, evolving and highly experimental phase. Understanding its future political economy...
Opinion Pieces
Apr 2015
Jon Danielsson and Chen Zhou
Regulators and financial institutions increasingly depend on statistical risk forecasting. This column argues that most risk modelling approaches are highly inaccurate and confidence intervals should be provided along with point estimates. Two major...

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