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We discuss a special Pólya lattice model to study cascading failures of firms in a simple industrial economy. In particular, every firm is represented by a Pólya-like urn, whose reinforcement is function of time, of the neighboring urns and their compositions, and of a random variable...
Persistent link: https://www.econbiz.de/10011010873
Persistent link: https://www.econbiz.de/10012167361
This paper uses a toy financial system to study systemic risk in scale-free interbank networks. Networks are produced … for interbank networks are designed in a way to reproduce the frequently documented features of disassortative behavior …
Persistent link: https://www.econbiz.de/10010292729
Using variance decompositions in vector auto-regressions (VARs) we model a high-dimensional network of European CDS spreads to assess the transmission of credit risk to the non-financial corporate sector. Our findings suggest a sectoral clustering in the CDS network, where financial institutions...
Persistent link: https://www.econbiz.de/10011984861
Using variance decompositions in vector auto-regressions (VARs) we model a high-dimensional network of European CDS spreads to assess the transmission of credit risk to the non-financial corporate sector. Our findings suggest a sectoral clustering in the CDS network, where financial institutions...
Persistent link: https://www.econbiz.de/10012099207
: (1) by increasing the number of marriages; (2) by triggering fertility contagion: a woman, whether involved in a …
Persistent link: https://www.econbiz.de/10011098346
contagion, and show that the presence of critical edges prevents it. We also find that networks organized as dense clusters … seed group, imitative learning results in the overall adoption of cooperation — efficient contagion. Key to this result … seed group, the easier it is for efficient contagion to take place. We highlight the importance of cycles for efficient …
Persistent link: https://www.econbiz.de/10011161643
contagion models based on homogeneous and non-hierarchical networks. Also, results provide further evidence about financial … with evidence from other interbank markets and other financial networks regarding the flaws of traditional direct financial … networks’ self-organization emerging from complex adaptive financial systems. Our research contributes by (i) examining and …
Persistent link: https://www.econbiz.de/10011092945
contagion models based on homogeneous and non-hierarchical networks, and provide further evidence about financial networks’ self … with evidence from other interbank markets and other financial networks regarding the flaws of traditional direct financial … characterizing the actual connective structure of interbank funds networks; (ii) identifying those financial institutions that may be …
Persistent link: https://www.econbiz.de/10010765765
This paper uses a toy financial system to study systemic risk in scale-free interbank networks. Networks are produced … for interbank networks are designed in a way to reproduce the frequently documented features of disassortative behavior …
Persistent link: https://www.econbiz.de/10010905570