Working Paper: NBER ID: w18505
Authors: Lars Peter Hansen
Abstract: Sparked by the recent "great recession" and the role of financial markets, considerable interest exists among researchers within both the academic community and the public sector in modeling and measuring systemic risk. In this essay I draw on experiences with other measurement agendas to place in perspective the challenge of quantifying systemic risk, or more generally, of providing empirical constructs that can enhance our understanding of linkages between financial markets and the macroeconomy.
Keywords: No keywords provided
JEL Codes: E44
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| systemic risk (E44) | financial market stability (E44) |
| financial market stability (E44) | regulatory intervention (G18) |
| systemic risk (E44) | major dysfunction in financial markets (E44) |
| major dysfunction in financial markets (E44) | regulatory intervention (G18) |
| systemic risk (E44) | vulnerabilities within financial networks (F65) |
| systemic risk (E44) | potential insolvency of major financial players (F65) |