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  • Franklin Allen, Ana Babus, and Elena Carletti, Market Institutions and Financial Market Risk (Journal of Financial Economics 104 (3), 2010), https://www.nber.org/books-and-chapters/market-institutions-and-financial-market-risk/asset-commonality-debt-maturity-and-systemic-risk.

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We develop a model where institutions form connections through swaps of projects in order to diversify their...

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