Title：Resolutions in a system of financially linked firms: Bankruptcy, defaults, and proportionality
Speaker：Gabrielle Demange (Paris School of Economics)
Abstract:In a financial system, firms hold debts both within and outside the system. The reimbursement abilities are intertwined, thereby potentially generating coordination failures and a cascade of defaults. To avoid such failures and account for the links in the system, an orderly resolution liquidates all debts simultaneously and assigns the amount each firm receives and reimburses both inside and outside the system. I present properties that determine which firms are left bankrupt and how much the non-bankrupt ones reimburse and receive. The main properties are the priority of external creditors at the system level and the proportionality principle.
Time：08/16（Friday）9:30-11:30
Venue：Activity Center 331
About the Speaker: Gabrielle Demange教授是世界著名经济学家。她于巴黎六大获经济学博士学位，现为巴黎经济学院(Paris School of Economics)教授。她的研究方向是博弈论和金融学。她是美国人文和艺术学院外籍院士、欧洲科学院院士、计量经济学会会士、博弈论学会会士、经济理论促进学会会士。此外，她还获法国CNRS银奖。她于2022-2024年任博弈论学会副主席，并即将于八月在北京大学召开的世界博弈论大会中就任主席。
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