The paper: Decentralized Clearing in Financial Networks by Péter CSÓKA was published online in Management Science.
We consider a situation in which agents have mutual claims on each other, summarized in a liability matrix. Agents’ assets might be insufficient to satisfy their liabilities, leading to defaults. In case of default, bankruptcy rules are used to specify the way agents are going to be rationed. A clearing payment matrix is a payment matrix consistent with the prevailing bankruptcy rules that satisfies limited liability and priority of creditors. Since clearing payment matrices and the corresponding values of equity are not uniquely determined, we provide bounds on the possible levels equity can take. Unlike the existing literature, which studies centralized clearing procedures, we introduce a large class of decentralized clearing processes. We show the convergence of any such process in finitely many iterations to the least clearing payment matrix. When the unit of account is sufficiently small, all decentralized clearing processes lead essentially to the same value of equity as a centralized clearing procedure. As a policy implication, it is not necessary to collect and process all the sensitive data of all the agents simultaneously and run a centralized clearing procedure.
Venue: MTA HTK 1097 Budapest Tóth Kálmán u. 4. fszt. K0.13-14 Békés Gábor, Bisztray Márta: Területi egyensúly – a munkaerőpiac és az ingatlanárak kapcsolata Magyarországon Spatial equilibrium – links between the labor market and housing ... Details »
Venue: MTA HTK 1097 Budapest Tóth Kálmán u. 4. fszt. K0.11-12 András SIMONOVITS: Peeling the onion: Models of flexible retirement age To solve the pension problems of aging populations one of the most efficient tools is ... Details »
Venue: MTA HTK 1097 Budapest Tóth Kálmán u. 4. fszt. K0.11-12 Ágnes CSEH: Organizing Time Banks: Lessons from Matching Markets (with T. Andersson, L. Ehlers, and A. Erlanson) A time bank is a group of ... Details »
A note on the relationship between the core and stable sets in three-sided markets – was published by Ata Atay and Marina Núñez in ... Details »
The goals and consequences of the centralization of public education in Hungary – by András SEMJÉN, Marcell LE and Zoltán HERMANN in Acta Educationis ... Details »
Collapse of an online social network: Burning social capital to create it? by László LŐRINCZ et al. in Social Networks: Lőrincz, L ; Koltai, ... Details »