Systemic Risk

Shadow Banking ArXiv ID: ssrn-1645337 “View on arXiv” Authors: Unknown Abstract The rapid growth of the market-based financial system since the mid-1980s changed the nature of financial intermediation in the United States profoundly. Within Keywords: Market-Based Financial System, Financial Intermediation, Shadow Banking, Credit Intermediation, Systemic Risk, Fixed Income / Credit Complexity vs Empirical Score Math Complexity: 6.0/10 Empirical Rigor: 8.5/10 Quadrant: Holy Grail Why: The paper involves advanced mathematical modeling of shadow banking’s systemic risks, but also includes rigorous empirical analysis of data from financial intermediaries and markets, making it both theoretically complex and data-heavy. flowchart TD A["Research Goal: How does shadow banking reshape financial intermediation & systemic risk?"] --> B["Data/Inputs: SEC filings, CRSP, FR Y-9C, MBS/ABS issuance data (1985-2008)"] B --> C["Key Methodology: Comparative analysis of Market-Based vs. Traditional Banking"] C --> D["Computational Process: Asset growth regression & maturity transformation modeling"] D --> E["Key Finding 1: Shadow banks replicate maturity transformation but lack deposit insurance"] D --> F["Key Finding 2: Systemic risk shifts from banks to capital markets via run-prone liabilities"] E & F --> G["Outcome: Policy shift needed for prudential regulation in non-bank financial intermediation"]

The Global Financial Crisis and the Efficient Market Hypothesis: What Have We Learned? ArXiv ID: ssrn-1502815 “View on arXiv” Authors: Unknown Abstract The sharp economic downturn and turmoil in the financial markets, commonly referred to as the “global financial crisis,” has spawned an impressive outpouring of Keywords: Global Financial Crisis, Systemic Risk, Liquidity Crises, Contagion, Banking Regulation, Macro/Commodities Complexity vs Empirical Score Math Complexity: 1.5/10 Empirical Rigor: 0.5/10 Quadrant: Philosophers Why: The paper is a theoretical commentary on the Efficient Market Hypothesis (EMH) in the context of the Global Financial Crisis, discussing economic theory and historical anecdotes without mathematical proofs or empirical backtesting. flowchart TD A["Research Question: Does the GFC challenge the EMH?"] --> B["Method: Comparative Analysis"] B --> C["Data: Pre-crisis vs. Crisis Periods"] C --> D["Computational Process: Event Studies & Volatility Analysis"] D --> E["Key Findings"] E --> F["Market Inefficiency: Asset prices deviated from fundamentals"] E --> G["Systemic Risk: Contagion effects proved significant"] E --> H["Policy Implications: Enhanced banking regulation required"]

Securitized Banking and the Run on Repo ArXiv ID: ssrn-1454939 “View on arXiv” Authors: Unknown Abstract The Panic of 2007-2008 was a run on the sale and repurchase market (the “repo” market), which is a very large, short-term market that provides financi Keywords: Repurchase Agreement (Repo), Liquidity Crisis, Shadow Banking, Financial Stability, Systemic Risk, Fixed Income (Money Markets) Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 3.0/10 Quadrant: Philosophers Why: The paper is primarily a conceptual and empirical analysis of the 2007-2008 financial crisis, using novel data to trace contagion but lacking advanced mathematical formalism or backtesting frameworks. flowchart TD A["Research Goal:<br>Explain the 2007-2008 Panic"] --> B["Key Methodology:<br>Analyze Bank Holding Company Data"] B --> C["Data Inputs:<br>Repo Transactions & Financial Statements"] C --> D["Computational Processes:<br>Run Regressions on Liquidity Creation"] D --> E["Key Findings/Outcomes:<br>1. Repo funding runs caused the crisis<br>2. Increased securitization heightened systemic risk"]

Securitized Banking and the Run on Repo ArXiv ID: ssrn-1440752 “View on arXiv” Authors: Unknown Abstract The Panic of 2007-2008 was a run on the sale and repurchase market (the “repo” market), which is a very large, short-term market that provides financing for a w Keywords: Repurchase Agreement (Repo), Liquidity Crisis, Shadow Banking, Financial Stability, Systemic Risk, Fixed Income (Money Markets) Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 7.5/10 Quadrant: Street Traders Why: The paper uses statistical correlation analysis on novel, real-world financial datasets (repo rates, haircuts, and credit spreads) to trace contagion, demonstrating high empirical rigor. Mathematical complexity is low, relying primarily on descriptive statistics and linear correlations rather than advanced stochastic calculus or dense modeling. flowchart TD A["Research Goal: What caused the<br>2007-2008 financial panic?"] B["Methodology: Analyze Repo Market<br>and Securitization Data"] C["Data: Repo Haircuts &<br>Liquidity of Securities"] D["Process: Quantify Liquidity<br>Transformation by Banks"] E["Outcome: Panic was a run on repo<br>driven by collateral haircuts"] A --> B B --> C C --> D D --> E

Hedge Funds, Systemic Risk, and the Financial Crisis of 2007-2008: Written Testimony for the House Oversight Committee Hearing on Hedge Funds ArXiv ID: ssrn-1301217 “View on arXiv” Authors: Unknown Abstract This document is the written testimony submitted to the House Oversight Committee for its hearing on hedge funds and the financial crisis, held November 13, 200 Keywords: Hedge Funds, Financial Crisis, Systemic Risk, Regulatory Policy, Hedge Funds Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 2.0/10 Quadrant: Philosophers Why: The document is a policy-oriented testimony with no mathematical formulas, derivations, or backtesting; it focuses on conceptual discussions of systemic risk and regulatory proposals rather than quantitative modeling or empirical data analysis. flowchart TD A["Research Goal: Assess hedge fund<br>role in the 2007-2008 crisis"] --> B["Data Collection & Methodology"] B --> C["Regulatory Analysis<br>Existing Frameworks"] B --> D["Empirical Analysis<br>Market Stress Events"] C & D --> E["Computational Processes<br>Systemic Risk Modeling"] E --> F{"Key Findings/Outcomes"} F --> G["Regulatory Gaps Identified"] F --> H["Policy Recommendations<br>for Oversight"]

Defining Financial Stability ArXiv ID: ssrn-879012 “View on arXiv” Authors: Unknown Abstract The main objective of this paper is to propose a definition of financial stability that has some practical and operational relevance. Financial stability is def Keywords: Financial stability, Systemic risk, Macroprudential policy, Financial regulation, Risk management, Macro Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 1.0/10 Quadrant: Philosophers Why: The paper is a conceptual and theoretical work proposing a definition of financial stability, with no mathematical models, derivations, or empirical data analysis presented in the excerpt. flowchart TD A["Research Goal<br>Define Financial Stability<br>with Practical Relevance"] --> B["Methodology<br>Conceptual Analysis &<br>Systemic Risk Framework"] B --> C["Inputs<br>Macroprudential Policy<br>& Financial Regulation Data"] C --> D["Computational Process<br>Agent-Based Modeling &<br>Risk Transmission Analysis"] D --> E["Key Outcomes<br>Operational Definition<br>Macroprudential Tools<br>Risk Management Metrics"]