Size and Risk in Financial Markets (Tamaño y Riesgo en los Mercados Financieros)

8 Pages Posted: 12 Dec 2009 Last revised: 6 Jan 2010

See all articles by Fernando Estrada

Fernando Estrada

Universidad Externado de Colombia - Facultad de Finanzas, Gobierno y Relaciones Internacionales

Date Written: December 10, 2009

Abstract

This paper examines relationships between size and risk in financial markets. Based on the work of Makridakis/Taleb [2009] and Taleb/Tapiero [2009], presents the problems of excessive risk and imbalances caused by the size of firms. Markets mixed on firm growth traps externalities can influence risk, high-cost for the commons. A policy of regulation and control in markets, while necessary, are still insufficient in economies with little institutional support. Externalities of risk and firm size categories are fundamental to understanding the present financial crisis since the economies of scale.

Note: Downloadable document is in Spanish.

Keywords: Financial Markets, Economic Crisis, Size, Risk, Economies of Scale

JEL Classification: N01, D52, D11, D13

Suggested Citation

Estrada, Fernando, Size and Risk in Financial Markets (Tamaño y Riesgo en los Mercados Financieros) (December 10, 2009). Available at SSRN: https://ssrn.com/abstract=1521906 or http://dx.doi.org/10.2139/ssrn.1521906

Fernando Estrada (Contact Author)

Universidad Externado de Colombia - Facultad de Finanzas, Gobierno y Relaciones Internacionales ( email )

Calle 12 # 0 - 85 Este, Barrio La Candelaria
Bogota, DC Cundinamarca 1267
Colombia
05-71 - 3419900 - ext. 1202 (Phone)

HOME PAGE: http://ideas.repec.org/f/pga454.html

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