When: Friday, December 11, 2020, 12:00 PM - 1:00 PMWhere: Online
This event is the final in a four part series, coveringthe following topics and more: bankruptcy, shutdown policy, pandemics, market reaction, financial markets, business sectors, panic runs and agent networks.
Authors: Arman Eshraghi (Cardiff University) and Gulnur Muradoglu (Queen Mary University of London)
Abstract: Against the Covid-19 backdrop, this paper argues that mainstream models of accounting and finance tend to miss panic runs and associated shocks by not fully incorporating market agents in relation to their networks. Drawing on Callon (1998) framework whereby the assumption of atomised behaviour of economic agents is replaced by their dependence on the natural environment in which they operate, we caution against labelling the recent pandemic shocks as ‘externalities’ and ‘black swans’. Our paper shows that such Callonian overflows are common to both bank runs and supermarket runs associated with the Covid-19 pandemic.