Financial Contagion in Network Economies and Asset Prices

The authors thank the editorial board and the reviewers for the many insightful comments and recommendations that improved the paper. They are grateful to Laura Bottazzi, Celso Brunetti, Elena Carletti, Peter Carr, Agostino Capponi, Paolo Colla, Francesco Corielli, Can Gao, Paolo Guasoni, Massimo Guidolin, Bernard Herskovic (European Finance Association discussant), Fabio Mercurio, Loriana Pellizzon, Carlos Ramirez, Emanuela Rosazza Gianin (Quantitative Finance Workshop discussant), Julien Sauvagnat, Andrea Sironi, Silvio Petriconi, Alireza Tabaz-Salehi (Western Finance Association discussant), Kathy Yuan (the Joint European Central Bank and Bundes Bank Spring Conference discussant), Tai-Ho Wang, and seminar participants at the European Finance Association meeting Mannheim 2017, Polytechnic University of Milano, Dublin City University, the European Econometric Society Meeting Cologne 2018, the Quantitative Finance Workshop ETH Zurich 2019, the Joint European Central Bank and Bundes Bank Spring Conference Frankfurt 2019, the Western Finance Association meeting Huntington Beach 2019, New York University Brooklyn Quant Experience 2020 Lectures, and St. Gallen University for helpful comments. The usual disclaimer applies. A previous version of this paper circulated with the title “Asset pricing implications of contagion risk in network economies.”