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Authors: Grilli, Ruggero, Iori, Giulia, Stamboglis, Niccol and Tedeschi, Gabriele

Journal: Introduction to Agent-Based Economics, Chapter 10, Edited by Mauro Gallegati, Antonio Palestrini, Alberto Russo, Elsevier

Year: 2017

Status: Book Chapters

Abstract: The aim of this chapter is to review the literature on credit market models by emphasizing the mechanisms able to generate financial crises and contagion. From the theoretical microeco- nomic literature up to network theory and agent-based methodologies, we illustrate how these different approaches investigate the (in)stability of financial systems. Although very different, these methodologies emphasize the importance of a careful analysis of the interaction among heterogeneous agents which is recognized as the key element in explaining real and financial cycles.

Link: https://doi.org/10.1016/B978-0-12-803834-5.00013-8