Network Analysis and Calibration of the 'Leveraged Network-Based Financial Accelerator'
Posted: 12 Oct 2012 Last revised: 20 May 2019
Date Written: October 11, 2012
In this paper we analyze the network structure that endogenously emerges in the credit market of the agent-based model of Riccetti et al. (2011), where two kinds of financial accelerator are at work: the 'leverage accelerator' and the 'network-based accelerator'. We focus on the properties of the network topology and its interplay with the overall economic performance. Moreover, we empirically calibrate the banking network in the model by using Japanese real data.
Keywords: network, bankruptcy cascades, calibration, leverage
JEL Classification: C63, D85, E32
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