Assessing systemic risk due to fire sales spillover through maximum entropy network reconstruction

Assessing systemic risk in financial markets is of great importance but it often requires data that are unavailable or available at a very low frequency. For this reason, systemic risk assessment with partial information is potentially very useful for regulators and other stakeholders. In this paper we consider systemic risk due to fire sales spillover and portfolio rebalancing by using the risk metrics defined by Greenwood et al. (2015). By using the Maximum Entropy principle we propose a method to assess aggregated and single bank's systemicness and vulnerability and to statistically test for a change in these variables when only the information on the size of each bank and the capitalization of the investment assets are available. We prove the effectiveness of our method on 2001-2013 quarterly data of US banks for which portfolio composition is available.Comment: 36 pages, 6 figures, Accepted on Journal of Economic Dynamics and Contro

Arts Entrepreneurship: An Essential Sub-System of the Artist\u27s Meta-Praxis

As the field of Arts Entrepreneurship education continues to grow, the barriers it confronts prevent maximum vitality. Leading scholars and administrators indicate that program development and formal accreditation standards are important components supporting the field\u27s growth. As such, this document explores next steps and examines how to move the field towards academic maturity. First, notable Arts Entrepreneurship academic programs are compared and contrasted as a representative sample of existing curricular approaches. Second, issues of accreditation are analyzed as barriers preventing growth, followed by recommendations for removing these obstacles. Third, the Artist\u27s Meta-Praxis conceptual framework is presented as a way to describe an artist\u27s motivations and goals. By articulating how entrepreneurial action fits into the life practice of artists, this document suggests a synergetic relationship between the two, thus enabling artists to better fulfill their professional goals. Consequently, the framework focuses on: 1) the complexity of entrepreneurship in music (and by extension, all arts disciplines), and 2) finding specific, sufficient pathways capable of logically placing entrepreneurial action within the broader context of a musician\u27s (and by extension, all artists) professional activities. The Artist\u27s Meta-Praxis is intended to depict commonalities and amplify profound connections between artistic action and the art of entrepreneurial action. Accordingly, the framework is presented as a step towards empowering arts students for the complexities of effective entrepreneurial action, by identifying and ordering the scope of knowledge and skills artists need for entrepreneurial success. Further, the model demonstrates how entrepreneurship education and training could be integrated into higher education arts programs, serving to help faculty, administrators and students recognize the relationships between content, concept, and context when engaging in artistic and entrepreneurial action. By including the necessary and sufficient elements that an artist -- acting entrepreneurially -- would require, the framework contains explanatory power, both in minute detail and broad categories, regarding the totality of how an arts entrepreneur\u27s system functions. A fourth theme in the document uses classical guitar training as an example, demonstrating that artistic training in general, and guitar in particular, requires the engagement of divergent thinking, which produces artists with the specific skills needed for significant entrepreneurial action