Endogenous Risk Exposure and Systemic Instability

The author thanks an anonymous associate editor, two referees, Kenneth Ahern, Raphael Boleslavsky, Philip Bond, Odilon Câmara, Matthew Gentzkow, Itay Goldstein, John Matsusaka, Michael Magill, Oguzhan Ozbas, Rodney Ramcharan, Alireza Tahbaz-Salehi, Carlos Ramirez (Discussant), Hong Ru (Discussant), Christoph Schiller (Discussant), Fabrice Tourre (Discussant), Lucy White (Discussant), Michael Gofman (Discussant), Ernest Liu, João Ramos, and participants at 18th Transatlantic Doctoral Conference, 2018 Summer Meeting of the Econometric Society, 2018 China International Risk Forum, 19th FDIC/JFSR Annual Bank Research Conference, 8th CIRANO-Sam M. Walton College of Business Workshop on Networks, the 2nd Office of Financial Research (OFR) PhD Symposium on Financial Stability, 2020 European Finance Association Doctoral Tutorial, 2020 Young Economist Symposium, 2020 Northern Finance Association, 2020 OFR/Cleveland Fed Financial Stability Conference, and 2021 Federal Reserve Board Conference on Interconnectedness of Financial Systems.