Cascades in multiplex financial networks with debts of different seniority.

@article{Brummitt2015CascadesIM,
  title={Cascades in multiplex financial networks with debts of different seniority.},
  author={Charles D. Brummitt and Teruyoshi Kobayashi},
  journal={Physical review. E, Statistical, nonlinear, and soft matter physics},
  year={2015},
  volume={91 6},
  pages={
          062813
        }
}
The seniority of debt, which determines the order in which a bankrupt institution repays its debts, is an important and sometimes contentious feature of financial crises, yet its impact on systemwide stability is not well understood. We capture seniority of debt in a multiplex network, a graph of nodes connected by multiple types of edges. Here an edge between banks denotes a debt contract of a certain level of seniority. Next we study cascading default. There exist multiple kinds of bankruptcy… 

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