Minskyan model with credit rationing in a network economy

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The global financial crisis of 2007/2008 has shown the importance of modeling economic agents not in isolation but as interconnected and interactive components of dynamically evolving systems. Within this framework, the field of complex systems for the study of economic dynamics has been the object...

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Autores principales: Noguera, Deborah, Montes-Rojas, Gabriel
Formato: Artículo publishedVersion
Lenguaje:Inglés
Publicado: 2023
Materias:
Economía
Computational economics
Agent-based models
Financial instability and fragility
Credit networks
Banks behavior
Acceso en línea:https://www.memoria.fahce.unlp.edu.ar/art_revistas/pr.15581/pr.15581.pdf
Aporte de:
Memoria Académica - FaHCE (UNLP) de Universidad Nacional de La Plata
id I19-R125-Jpr15581
record_format dspace
spelling I19-R125-Jpr155812023-04-03 2023 Noguera, Deborah Montes-Rojas, Gabriel The global financial crisis of 2007/2008 has shown the importance of modeling economic agents not in isolation but as interconnected and interactive components of dynamically evolving systems. Within this framework, the field of complex systems for the study of economic dynamics has been the object of renewed interest. This paper is based on Minsky's Financial Instability Hypothesis and on the literature of Agent-Based Models to analyze a bank credit market where heterogeneous firms and banks interact following game theory rules. The objective is twofold: (1) to evaluate the influence of bank behavior on the formation of the credit network and the spread of financial difficulties in an agent-based model; and, (2) to analyze the properties of the emerging credit network and its influence on macroeconomic performance. Our simulations suggest that aggregate economic instability may arise as a result of the liquidity preference behavior of banks that restrict credit to the productive sector when they have pessimistic expectations. Fil: Noguera, Deborah. Universidad Nacional de La Plata. Facultad de Humanidades y Ciencias de la Educación. Instituto de Investigaciones en Humanidades y Ciencias Sociales (UNLP-CONICET); Argentina. application/pdf eng info:eu-repo/semantics/altIdentifier/doi/10.1007/s43546-023-00446-z info:eu-repo/semantics/openAccess https://creativecommons.org/licenses/by-nc-sa/4.0/ SN Business & Economics 3(75). (2023) ISSN 2662-9399 Economía Computational economics Agent-based models Financial instability and fragility Credit networks Banks behavior Minskyan model with credit rationing in a network economy info:eu-repo/semantics/article info:ar-repo/semantics/artículo info:eu-repo/semantics/publishedVersion https://www.memoria.fahce.unlp.edu.ar/art_revistas/pr.15581/pr.15581.pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-125
collection Memoria Académica - FaHCE (UNLP)
language Inglés
orig_language_str_mv eng
topic Economía
Computational economics
Agent-based models
Financial instability and fragility
Credit networks
Banks behavior
spellingShingle Economía
Computational economics
Agent-based models
Financial instability and fragility
Credit networks
Banks behavior
Noguera, Deborah
Montes-Rojas, Gabriel
Minskyan model with credit rationing in a network economy
topic_facet Economía
Computational economics
Agent-based models
Financial instability and fragility
Credit networks
Banks behavior
description The global financial crisis of 2007/2008 has shown the importance of modeling economic agents not in isolation but as interconnected and interactive components of dynamically evolving systems. Within this framework, the field of complex systems for the study of economic dynamics has been the object of renewed interest. This paper is based on Minsky's Financial Instability Hypothesis and on the literature of Agent-Based Models to analyze a bank credit market where heterogeneous firms and banks interact following game theory rules. The objective is twofold: (1) to evaluate the influence of bank behavior on the formation of the credit network and the spread of financial difficulties in an agent-based model; and, (2) to analyze the properties of the emerging credit network and its influence on macroeconomic performance. Our simulations suggest that aggregate economic instability may arise as a result of the liquidity preference behavior of banks that restrict credit to the productive sector when they have pessimistic expectations.
format Artículo
Artículo
publishedVersion
author Noguera, Deborah
Montes-Rojas, Gabriel
author_facet Noguera, Deborah
Montes-Rojas, Gabriel
author_sort Noguera, Deborah
title Minskyan model with credit rationing in a network economy
title_short Minskyan model with credit rationing in a network economy
title_full Minskyan model with credit rationing in a network economy
title_fullStr Minskyan model with credit rationing in a network economy
title_full_unstemmed Minskyan model with credit rationing in a network economy
title_sort minskyan model with credit rationing in a network economy
publishDate 2023
url https://www.memoria.fahce.unlp.edu.ar/art_revistas/pr.15581/pr.15581.pdf
work_keys_str_mv AT nogueradeborah minskyanmodelwithcreditrationinginanetworkeconomy
AT montesrojasgabriel minskyanmodelwithcreditrationinginanetworkeconomy
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