@techreport{b82d6514e1cb4d36a934ab7fd45fbeb4,
title = "Diversification at Financial Institutions and Systemic Crises",
abstract = "We show that the diversification of risks at financial institutions has unwelcome effects by increasing the likelihood of systems crises.As a result, complete diversification is not warranted adn the optimal degree of diversification is arbitrarily low.We also identify externalities that cause financial institutions to diversify beyond diversification may thus have reduced welfare.",
keywords = "diversification, financial consolidation, conglomeration, securitization, system risk",
author = "W.B. Wagner",
note = "Subsequently published in Journal of Financial Intermediation, 2010 Pagination: 40",
year = "2006",
language = "English",
volume = "2006-71",
series = "CentER Discussion Paper",
publisher = "Macroeconomics",
type = "WorkingPaper",
institution = "Macroeconomics",
}