Scale-Ordered Contagion: A Spectral Theory of Heterogeneous Information Adaptation in Financial Networks (opens in new tab)

In this paper, an attempt is made to examine how the speed at which financial markets absorb information governs the way shocks travel between them. It may be noted that a market which digests news slowly will register an incoming shock more gradually, and hence over longer horizons, than a market which reacts quickly. Building on the Heterogeneous Agents Contagion versus Interdependence (HACI) framework, in which advanced economies adapt quickl...