Intermediaries’ Substitutability and Financial Network Resilience: A Hyperstructure Approach

This paper studies the impact of intermediaries’ disappearance on firms’ access to sterling money market during first globalization era 1880-1914. We propose a new methodology assess substitutability in financial networks featuring higher-order structures (credit intermediation chains). represent network as hyperstructure and each credit chain hyperedge. approach allows us how failure intermediaries affects connectivity. apply this unique dataset documenting structure year 1906. Our results reveal that individual actors could only cause limited damage were highly substitutable. These findings suggest an international without systemic nodes can emerge even at time global economic integration.