Dynamic clearing and contagion in financial networks

We will consider an extension of the Eisenberg-Noe model of financial contagion to allow for time dynamics in both discrete and continuous time. Mathematical results on existence and uniqueness of firm wealths under discrete... [ view full abstract ]

We will consider an extension of the Eisenberg-Noe model of financial contagion to allow for time dynamics in both discrete and continuous time. Mathematical results on existence and uniqueness of firm wealths under discrete and continuous-time will be provided. The financial implications of time dynamics will be considered, with focus on how the dynamic clearing solutions differ from those of the static Eisenberg-Noe model.