Financial Liquidity and Network Theory

Project: Research project

Project Details

Description

Financial Liquidity and Network Theory Financial Liquidity and Network Theory Utilizing a network science perspective, we propose to study liquidity and coherence within financial networks in order to strengthen our understanding of fat-tailed observations. Financial networks are sufficiently complex, and we empirically observe that excess and lack of liquidity occurs with greater frequency than efficient market results would suggest. Through a rigorous theoretical and empirical framework, we propose to explain, predict, and prescribe liquidity crises and coherent behavior. We will model financial networks through a multidisciplinary approach that will draw upon the microeconomic and financial literature as well as key results from various network science domains. This research is crucial not only as a fresh perspective on financial markets, but also as a big step towards understanding the nature of the financial crisis which confronts the world today.
StatusFinished
Effective start/end date8/28/0912/31/12

Funding

  • National Academies: $50,000.00

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