The Uncertainty Channel of Contagion

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  • The Uncertainty Channel of Contagion Book Detail

  • Author : Mr.Prakash Kannan
  • Release Date : 2009-10-01
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 42
  • ISBN 13 : 1451873662
  • File Size : 47,47 MB

The Uncertainty Channel of Contagion by Mr.Prakash Kannan PDF Summary

Book Description: The 2007 subprime crisis in the U.S. triggered a succession of financial crises around the globe, reigniting interest in the contagion phenomenon. Not all crises, however, are contagious. This paper models a new channel of contagion where the degree of anticipation of crises, through its impact on investor uncertainty, determines the occurrence of contagion. Incidences of surprise crises lead investors to doubt the accuracy of their informationgathering technology, which endogenously increases the probability of crises elsewhere. Anticipated crisis, instead, have the opposite effect. Importantly, this channel is empirically shown to have an independent effect beyond other contagion channels.

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The Uncertainty Channel of Contagion

The Uncertainty Channel of Contagion

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The 2007 subprime crisis in the U.S. triggered a succession of financial crises around the globe, reigniting interest in the contagion phenomenon. Not all crise

The Uncertainty Channel of Contagion

The Uncertainty Channel of Contagion

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The 2007 subprime crisis in the United States has triggered a succession of financial crises around the globe, reigniting interest in the contagion phenomenon.

The Uncertainty Channel of Contagion

The Uncertainty Channel of Contagion

File Size : 52,52 MB
Total View : 8307 Views
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The 2007 subprime crisis in the United States has triggered a succession of financial crises around the globe, reigniting interest in the contagion phenomenon.