Global Entropy

53 Pages Posted: 16 Feb 2014 Last revised: 11 Sep 2015

See all articles by Mariano (Max) Massimiliano Croce

Mariano (Max) Massimiliano Croce

Finance Department, Bocconi University; Centre for Economic Policy Research (CEPR)

Thien Tung Nguyen

Ohio State University (OSU) - Department of Finance

Lukas Schmid

University of Southern California - Marshall School of Business

Date Written: February 8, 2013

Abstract

The recent fiscal crisis in the EU and the slow-down of the BRICS countries have raised world-wide concerns about future global growth prospects. We examine the role of doubts about both local and foreign economic shocks by constructing an international endogenous growth model with technology diffusion across countries. In this setting, endogenous technology spillovers generate global growth shocks. When agents have concerns for robustness, country-specific shocks (1) alter global entropy, and (2) generate long-term contagion.

Keywords: Global Growth, Entropy, Contagion

JEL Classification: C62, F31, E62, G1, H2, H3

Suggested Citation

Croce, Mariano Massimiliano and Nguyen, Thien Tung and Schmid, Lukas, Global Entropy (February 8, 2013). Available at SSRN: https://ssrn.com/abstract=2396646 or http://dx.doi.org/10.2139/ssrn.2396646

Mariano Massimiliano Croce (Contact Author)

Finance Department, Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

HOME PAGE: http://sites.google.com/view/mmcroce/home

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Thien Tung Nguyen

Ohio State University (OSU) - Department of Finance ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

Lukas Schmid

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd, HOH 431
Los Angeles, CA California 90089-1424
United States

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