... Working Paper No 383 Contagion in financial networks Prasanna Gai( 1) and Sujit Kapadia( 2) Abstract This paper develops an analytical model of contagion in financial networks with arbitrary ... de ne a second single-argument generating function, G y/, for the number of links leaving a bank reached by following a randomly chosen incoming link Because we are interested in the propagation ... random networks' , Proceedings of the National Academy of Sciences, Vol 99, pages 5,766-71 Wells, S (2004), `Financial interlinkages in the United Kingdom's interbank market and the risk of contagion' ,...