Delli Gatti, Domenico; Gallegati, Mauro; Greenwald, Bruce; … - In: Journal of Economic Dynamics and Control 34 (2010) 9, pp. 1627-1650
We model a credit network characterized by credit relationships connecting (i) downstream (D) and upstream (U) firms and (ii) firms and banks. The net worth of D firms is the driver of fluctuations. The production of D firms and of their suppliers (U firms) in fact, is constrained by the...