Input-Output-based Measures of Systemic Importance

Iñaki Aldasoro and Ignazio Angeloni ()

MPRA Paper from University Library of Munich, Germany

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.

Keywords: banks; input-output; systemic risk; too-interconnected-to fail; networks; interbank markets (search for similar items in EconPapers)
JEL-codes: C67 G00 G01 G20 (search for similar items in EconPapers)
Date: 2013-08
New Economics Papers: this item is included in nep-ban, nep-hme, nep-net and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Journal Article: Input-output-based measures of systemic importance (2015)
Working Paper: Input-output-based measures of systemic importance (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:49557

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