"It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to fit facts."
-Sherlock Holmes, (Courtesy of N. Gregory Mankiw's first-year undergraduate text!)
I am proud to say that I spent a good bit of time canvassing the empirical finance literature for evidence that the density of financial networks can be destabilizing before I actually sat down to try to develop a theoretical model of this phenomenon.
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