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Modeling Economic Activities and Random Catastrophic Failures of Financial Networks via Gibbs Random Fields

Author

Listed:
  • Levent Onural

    (Bilkent University)

  • Mustafa Çelebi Pınar

    (Bilkent University)

  • Can Fırtına

    (Bilkent University)

Abstract

The complicated economic behavior of entities in a population can be modeled as a Gibbs random field (GRF). Even with simple GRF models, which restrict direct statistical interactions with a small number of neighbors of an entity, real life economic and financial activities may be effectively described. A computer simulator is developed to run empirical experiments to assess different coupling structures and parameters of the presented model; it is possible to test many economic and financial models and policies in terms of their transient and steady-state consequences.

Suggested Citation

  • Levent Onural & Mustafa Çelebi Pınar & Can Fırtına, 2021. "Modeling Economic Activities and Random Catastrophic Failures of Financial Networks via Gibbs Random Fields," Computational Economics, Springer;Society for Computational Economics, vol. 58(2), pages 203-232, August.
    • Handle: RePEc:kap:compec:v:58:y:2021:i:2:d:10.1007_s10614-020-10023-3
    DOI: 10.1007/s10614-020-10023-3
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    References listed on IDEAS

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