Authors: Ruggero Grilli, Giulia Iori, Niccolò Stamboglis, Gabriele Tedeschi
Journal: Introduction to Agent Based Economics, Chapter 10, Pages 229–252 (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 microeconomic 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.