Theoretical and Applied Economics
No. 3 / 2020 (624), Autumn
Simulation of financial contagion effect using the NetLogo software at the level of the banking network
Bucharest University of Economic Studies, Romania
Abstract. The complexity of current financial systems around the world makes it difficult to create indicators that accurately assess the systemic risk of any institution. One of the most important issues that has been highlighted in recent years has been the interconnection of banks in the financial network. This led to an increase in the likelihood of contagion, a scenario in which small shocks, which initially impacted only a part of the institutions in the system, spread across the network. Thus, this paper studies the effects of financial contagion that can be transmitted in a banking network, simulating the spread of this effect with the help of the NetLogo IT solution. In recent years, banking accidents have led to a significant disruption of the financial system around the world. Even the COVID-19 pandemic can represent a systemic shock in the banking network and not only and an ascending evolution of the pandemic will be able to create a financial contagion effect at the level of banking institutions.
Keywords: financial contagion, NetLogo, banking network.
Contents
- Social protection systems and economic growth
Dorina GHEȚAN
Ada PAIERELE
- Analysis of the impact generated by COVID-19 in banking
institutions and possible economic effects
Nora CHIRIȚĂ
Ionuț NICA
- Covid crisis: Fiscal, monetary
and macro-financial policy responses
Provash Kumer SARKER
- Impact of education and government effectiveness
on the shadow economy
Sorina Emanuela ȘTEFONI
Andreea DRAGHIA
- Financial development and income inequality:
An empirical analysis on the emerging market economies
Günay ÖZCAN
- Aspects and evolutions specific to monetary policy
in Romania. A complex topical analysis
Alin Ioan CREŢU
Laurențiu TEȘCAN
- Structural modeling of fiscal structure for policy analysis:
A case study of India
Rajbhushan J NAYAK
Vishwanath PANDIT
Gopakumar K. U
- Macroeconomic variables and market expectations:
Indian Stock Market
Neha GUPTA
Arya KUMAR
- Relationship analysis of stocks prices and exchange rates
of three leading Asian economies
ANISHA
AASTHA KHERA
- Bitcoins as a determinant of stock market movements:
A comparison of Indian and Chinese Stock Markets
Pritpal Singh BHULLAR
Dyal BHATNAGAR
- The causal relationship between
Indian energy consumption and the GDP:
A shift from conservation to feedback hypothesis
post economic liberalisation
Saakshi CHAUHAN
Rajnish PANDE
Subrat SHARMA
- The dependence and dynamic correlation between
Islamic and conventional insurances and stock market:
A multivariate short memory approach
Rym Charef El ANSARI
Riadh El ABED
- Does exchange rate has any impact
on economic growth in India?
An empirical analysis
Khulsum SHAIK
Babu RAO G
- Corruption, technological innovation
and environmental quality in South Asian countries:
An empirical insight
Malayaranjan SAHOO
Deeptimayi SAHOO
- Analysis of the quarterly evolution
of the Gross Domestic Product
Constantin ANGHELACHE
Mădălina-Gabriela ANGHEL
Ștefan Virgil IACOB
Tudor SAMSON
- The main theoretical aspects regarding
the capital adequacy models
Constantin ANGHELACHE
Dana Luiza GRIGORESCU
Ștefan Gabriel DUMBRAVĂ
- Considerations regarding the effects of COVID-19
on the tourism market
Cristina-Andrada BABA
Aurelia-Felicia STĂNCIOIU
Manuela Rozalia GABOR
Florin-Alexandru ALEXE
Flavia Dana OLTEAN
Alexandra Cristina DINU