It's a Trap: Emperor Palpatine's Poison Pill

TL;DR

This paper models the galactic banking system to assess systemic risk from the destruction of Death Stars and the fall of Emperor Palpatine, proposing bailout strategies to prevent a galaxy-wide financial crisis.

Contribution

It introduces a calibrated simulation model of the galactic financial system to evaluate systemic risk and optimal bailout strategies after major political and military upheavals.

Findings

Quantifies systemic risk levels from galactic events.

Identifies economic reserves needed for bailout.

Suggests optimal banking intervention strategies.

Abstract

In this paper we study the financial repercussions of the destruction of two fully armed and operational moon-sized battle stations ("Death Stars") in a 4-year period and the dissolution of the galactic government in Star Wars. The emphasis of this work is to calibrate and simulate a model of the banking and financial systems within the galaxy. Along these lines, we measure the level of systemic risk that may have been generated by the death of Emperor Palpatine and the destruction of the second Death Star. We conclude by finding the economic resources the Rebel Alliance would need to have in reserve in order to prevent a financial crisis from gripping the galaxy through an optimally allocated banking bailout.