Advertisement
Published in:
2016 | OriginalPaper | Chapter
Behavioral Dimension of Systemic Risk
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
Systemic risk and sentiment are core concepts of the FIH. A financial firm is systemically risky when it is too big to fail in a financial crisis, and as a result contingency socialism comes into play as it is rescued by government action. According to the FIH, the route to contingency socialism features the occurrence of euphoria during an economic expansion. Euphoria is the leading edge of sentiment. This chapter discusses empirical aspects of analyzing the coevolution of systemic risk and sentiment over time.