Tesis para optar al grado de Magister en Análisis Economico / We develop a model to study the impact of banking networks on the probability of
credit freezes. Under the defined framework, we untangle the question about how bad
economic outcomes in one region can affect the willingness of the financial system to
provide funding to operating firms. We also we use it to understand some of the policies
implemented by the authority during a global crisis. The model presented consists of
two independent regions connected by cross holding deposits; banks use these deposits to
insure against regional shocks. In each region, we have interdependent operating firms,
whose success depends on macroeconomic conditions and on the ability of other firms to
find funding. In our economy, two types of credit freezes may arise, an efficient one and
an inefficient one. The latter is caused by the inability of financial firms to coordinate
with one another. The main result of this thesis, gives us conditions under which banking
networks affect the probability of an inefficient credit freeze. We also propose two channels
under which this relationship can operate.
| Identifer | oai:union.ndltd.org:UCHILE/oai:repositorio.uchile.cl:2250/168431 |
| Date | 06 1900 |
| Creators | Poblete, Camilo |
| Contributors | Berk, Jan Marc, Agosín Trumper, Manuel, Pastén H., Ernesto |
| Publisher | Universidad de Chile |
| Source Sets | Universidad de Chile |
| Language | English |
| Detected Language | English |
| Type | Tesis |
| Rights | Attribution-NonCommercial-NoDerivs 3.0 Chile, http://creativecommons.org/licenses/by-nc-nd/3.0/cl/ |
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