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.
Contents
Social protection systems and economic growth
Analysis of the impact generated by COVID-19 in banking institutions and possible economic effects
Covid crisis: Fiscal, monetary and macro-financial policy responses
Simulation of financial contagion effect using the NetLogo software at the level of the banking network
Impact of education and government effectiveness on the shadow economy
Financial development and income inequality: An empirical analysis on the emerging market economies
Aspects and evolutions specific to monetary policy in Romania. A complex topical analysis
Foreign trade policy and economic growth: Indian evidence
The effect of external debt on long run economic growth in developing economies: Evidence from heterogeneous panel data models with cross sectional dependency
Structural modeling of fiscal structure for policy analysis: A case study of India
Macroeconomic variables and market expectations: Indian Stock Market
Relationship analysis of stocks prices and exchange rates of three leading Asian economies
Bitcoins as a determinant of stock market movements: A comparison of Indian and Chinese Stock Markets
The causal relationship between Indian energy consumption and the GDP: A shift from conservation to feedback hypothesis post economic liberalisation
The dependence and dynamic correlation between Islamic and conventional insurances and stock market: A multivariate short memory approach
Does exchange rate has any impact on economic growth in India? An empirical analysis
Corruption, technological innovation and environmental quality in South Asian countries: An empirical insight
Analysis of the quarterly evolution of the Gross Domestic Product
The main theoretical aspects regarding the capital adequacy models
Considerations regarding the effects of COVID-19 on the tourism market