Network Analysis and Calibration of the 'Leveraged Network-Based Financial Accelerator'

Posted: 12 Oct 2012 Last revised: 20 May 2019

See all articles by Leonardo Bargigli

Leonardo Bargigli

University of Florence - Department of Economics and Management

Mauro Gallegati

Polytechnic University of Marche - Faculty of Economics

Luca Riccetti

Università degli Studi di Macerata

Alberto Russo

Università Politecnica delle Marche, Ancona - Department of Management

Date Written: October 11, 2012

Abstract

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

Suggested Citation

Bargigli, Leonardo and Gallegati, Mauro and Riccetti, Luca and Russo, Alberto, Network Analysis and Calibration of the 'Leveraged Network-Based Financial Accelerator' (October 11, 2012). Available at SSRN: https://ssrn.com/abstract=2160254 or http://dx.doi.org/10.2139/ssrn.2160254

Leonardo Bargigli

University of Florence - Department of Economics and Management ( email )

via delle Pandette 32
Florence, Florence 50127
Italy

Mauro Gallegati

Polytechnic University of Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
++390712207188 (Phone)
++390712207102 (Fax)

Luca Riccetti (Contact Author)

Università degli Studi di Macerata ( email )

via Crescimbeni
Macerata
Italy

HOME PAGE: http://docenti.unimc.it/luca.riccetti

Alberto Russo

Università Politecnica delle Marche, Ancona - Department of Management ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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