positive shocks, which creates moral hazard and is best explained by a “too-systemic-to-fail” effect. The contagion effects are … economically significant contagion channel for tail spread increases …

contagion using the theories of dynamical systems. Here, our main goal is to model the Eurozone financial crisis within that … detail how a suitable model can be set up for the Eurozone crisis. The dynamical system is defined by the evolution of the … prospect theory. Contagion is formulated in terms of how the market instability indicators for the different subsystems and the …