1. About.com
  2. Education
  3. Economics

The Cause, Effects, and Implications of Financial Contagion

The Cause, Effects, and Implications of Financial Contagion

From 

Notes

1 Kodres, Laura E. and Matthew Pritsker, April 19, 2001, A Rational Expectations Model of Financial Contagion, Forthcoming in the Journal of Finance

2 Kodres, p 4

3 Kodres, p 24

4 Kodres, p 5-7

5 Kodres, p 9-10

6 Some of the assumptions made in constructing the model, such as the assumption of CARA utility functions and the assumption that investors can borrow unrestrictedly, eliminate these effects. Kodres, p 13

7 Kodres p 13

8 Kodres, p 13

9 Kodres, p 13

10 Kodres, p 2-4

11 Kodres, p 31

12 Kodres, p 20

13 Kodres, p21

14 As found in "On the Efficiency of the Financial System" by James Tobin

This was an entry for The 2004 Moffatt Prize in Economic Writing. See the contest rules for more information.

If you'd like to leave comments about this entry, use the contest feedback form. Make sure to indicate that you are commenting on Jonathan Lhost's "The Cause, Effects, and Implications of Financial Contagion".

©2012 About.com. All rights reserved. 

A part of The New York Times Company.