Aldasoro, Iñaki and Angeloni, Ignazio
(2013):
*Input-Output-based Measures of Systemic Importance.*

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## Abstract

The analyses of intersectoral linkages of Leontief (1941)and Hirschman (1958) provide a natural way to study the transmission of risk among interconnected banks and to measure their systemic importance. In this paper we show how classic input-output analysis can be applied to banking and how to derive six indicators that capture different aspects of systemic importance, using a simple numerical example for illustration. We also discuss the relationship with other approaches, most notably network centrality measures, both formally and by means of a simulated network.

Item Type: | MPRA Paper |
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Original Title: | Input-Output-based Measures of Systemic Importance |

Language: | English |

Keywords: | banks, input-output, systemic risk, too-interconnected-to fail, networks, interbank markets |

Subjects: | C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models G - Financial Economics > G0 - General > G00 - General G - Financial Economics > G0 - General > G01 - Financial Crises G - Financial Economics > G2 - Financial Institutions and Services > G20 - General |

Item ID: | 49557 |

Depositing User: | Iñaki Aldasoro |

Date Deposited: | 06 Sep 2013 23:02 |

Last Modified: | 27 Sep 2019 07:51 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/49557 |