Stefano Battiston

TL;DR: DebtRank, a novel measure of systemic impact inspired by feedback-centrality, is introduced, finding that a group of 22 institutions, which received most of the funds, form a strongly connected graph where each of the nodes becomes systemically important at the peak of the crisis.

TL;DR: It is found that transnational corporations form a giant bow-tie structure and that a large portion of control flows to a small tightly-knit core of financial institutions that can be seen as an economic “super-entity” that raises new important issues both for researchers and policy makers.

TL;DR: In this article, the authors characterize the evolution over time of a network of credit relations among financial agents as a system of coupled stochastic processes, and investigate the probability of individual defaults as well as the probability for systemic default as a function of the network density.

TL;DR: In this article, the authors show that a financial network can be most resilient for intermediate levels of risk diversification, and not when this is maximal, as generally thought so far, and this finding holds in the presence of the financial accelerator, i.e., when negative variations in the financial robustness of an agent tend to persist in time because they have adverse effects on the agent's subsequent performance through the reaction of the agents counterparties.

TL;DR: This article developed a network-based climate stress-test methodology and applied it to large Euro Area banks in a "green" and a "brown" scenario, finding that direct and indirect exposures to climate-policy-relevant sectors represent a large portion of investors' equity portfolios, especially for investment and pension funds.