Mario Eboli

Mario Eboli
Università degli Studi G. d'Annunzio Chieti e Pescara | UNICH · Department of Business Economics

MPhil in Economics, University of Cambridge. Doctorate in Economics, University of Naples 'Federico II'

About

27
Publications
3,026
Reads
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134
Citations
Citations since 2017
12 Research Items
99 Citations
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201720182019202020212022202305101520
201720182019202020212022202305101520
201720182019202020212022202305101520
Additional affiliations
November 2001 - present
Università degli Studi G. d'Annunzio Chieti e Pescara
Position
  • Professor (Associate)

Publications

Publications (27)
Article
Full-text available
This paper studies the effects that connectivity and centralisation have on the response of interbank networks to external shocks that generate phenomena of default contagion. We run numerical simulations of contagion processes on randomly generated networks, characterised by different degrees of density and centralisation. Our main findings show t...
Preprint
This paper studies the effects that connectivity and centralisation have on the response of interbank networks to external shocks that generate phenomena of default contagion. We run numerical simulations of contagion processes on randomly generated networks, characterised by different degrees of density and centralisation. Our main findings show t...
Article
We study the administrative behaviour of a sample of Italian municipalities dismissed by the Government because of mafia infiltrations, looking at their balance-sheet data. Using linear discriminant analysis and logistic regressions, we put forward two statistical indicators of the probability that a mafia infiltrated a city council. Our results ch...
Article
Banks and financial institutions are linked by financial obligations that form complex networks. These networks serve risk sharing purposes and become channels of contagion in the event of liquidity and insolvency shocks. The consequent processes of loss diffusion are usually non-linear and, in some cases, exhibit phase transitions from situations...
Article
Full-text available
The extensive use of trade credit in all manufacturing sectors, despite its high cost, is an apparent puzzle that economists explain in terms of asymmetric information problems affecting financial markets. The financial constraints arising from credit rationing and limited access to stock markets suffice to induce firms to resort to trade credit as...
Article
In this study we represent a financial system as a flow network and model the process of direct balance-sheet contagion as a flow of losses crossing such a network. In establishing the necessary and sufficient conditions for the uniqueness of this flow of losses, we address a known problem of indeterminacy that arises from the intercyclicity of pay...
Article
Full-text available
This paper focuses on the effects that the concentration of the banking industry has on its exposure to the risk of systemic crises due to direct, balance-sheet financial contagion. Studying three stylized (and analytically tractable) classes of interbank networks-namely the complete, star and ring networks-we show that the magnitude of the smalles...
Article
Full-text available
This article characterizes the interbank deposit network as a flow network that is able to channel liquidity flows among banks. These flows are beneficial, allowing banks to cope with liquidity risk. First, we analyze the efficiency of three network structures: Star-shaped, complete, and incomplete in transferring liquidity among banks. The star-sh...
Conference Paper
Full-text available
In this paper we model interbank liquidity networks as flow networks. The aim is to compare the ability of different network structures to cope with the liquidity risk faced by the banks. In particular, we analyze the efficiency of three network structures –star-shaped, complete and incomplete – in transferring liquidity among banks. It turns out t...
Article
Full-text available
This paper puts forward a novel approach, based on the theory of network flows, for the analysis of default contagion in financial systems. We use a graph-theoretic representation of financial network and of the flows of losses that can propagate across such a network. Existence and conditions for uniqueness of a propagation of losses and defaults...
Article
This contribution focuses on the methodology applied in papers that investigate the dynamics of contagion in financial networks using numerical simulations. In these papers, a propagation of losses and defaults in a financial system is modeled as a direct balance-sheet contagion (a.k.a. counterparty contagion), that is the direct transmission of lo...
Article
This paper puts forward a comparison of the performance of sparsely and densely connected social networks in promoting the diffusion of innovations of uncertain profitability. To this end, we use a threshold model of innovation diffusion, based on a classic model of adoption of innovations via imitation by Jensen (Int. J. Ind. Organ. 6:335–350, 198...
Chapter
This paper points out a methodological lacuna in the recent stream of numerical analyses of contagion in financial networks, and presents a solution to amend it. Under some conditions, the intercyclical obligations that connect the agents in a financial network cause the indeterminacy of the vector of payments that clears such obligations. This pro...
Conference Paper
Full-text available
This paper puts forward a novel approach to the analysis of direct contagion in financial networks. Financial systems are here represented as flow networks -i.e., directed and weighted graphs endowed with source nodes and sink nodes – and the propagation of losses and defaults, originated by an exogenous shock, is here represented as a flow that cr...
Chapter
This paper reviews some recent applications of flow network theory to the modelling of financial systems and of interbank liquidity networks. Three features of network flows have proven to be particularly useful in this field: i) the modularity of the transmission of flows across a network; ii) the constancy of a flow across all cuts of a nertwork;...
Article
Full-text available
In this paper we compare the effects of two accounting rules, the mark-to-market and the historical cost regimes, on the dynamics of direct, balance sheet contagion in financial networks. This is done using a flow-network representation of a financial system and of the propagation of losses that crosses it as a consequence of a negative shock. We s...
Article
This paper puts forward an algorithm that computes the diffusion of events and actions across networks of economic agents, an algorithm that is applicable when such networks can be represented as weighted directed graphs. The functioning of the algorithm is shown in three applications. First, the algorithm is applied to a model of diffusion of inno...
Article
Full-text available
In this paper the economies of scale arising from the acquisition of costly information and their implications for the existence of a competitive equilibrium are investigated. As is known, the existence of economies in the scale of production undermines the possibility of a competitive equilibrium. This paper demonstrates that this kind of problem...
Article
This work examines then computational cost of processing the information required by Bayesian updating of beliefs. The standard statistical approach adopted by economists, restricted to the exponential family, ignores these computational aspects. To fill this lacuna, two models of probabilistic reasoning are put forward: a model of associative memo...
Article
This paper presents a model of adoption and diffusion of innovations that concern the technology of e-commerce. First, a model of optimal adoption of e-commerce innovation is presented. In this model web companies are assumed to behave in an imitative way: facing an innovation of uncertain profitability, they perceive the adoption decisions of othe...

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