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Credit Rationing in a Basic Agent-Based Model

Author

Listed:
  • Guido Fioretti

    (University of Bologna)

Abstract

A simple agent-based model of business units lending money to one another is sufficient to understand on what conditions avalanches of bankruptcies may arise. The model highlights the consequences of specialisation into money lending as well as the impact of preferential lending relations.

Suggested Citation

  • Guido Fioretti, 2005. "Credit Rationing in a Basic Agent-Based Model," Finance 0505002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpfi:0505002
    Note: Type of Document - pdf; pages: 15
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0505/0505002.pdf
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    References listed on IDEAS

    as
    1. Serena Sordi & Alessandro Vercelli, "undated". "Financial Fragility and Economic Fluctuations: Numerical Simulations and Policy Implications," Modeling, Computing, and Mastering Complexity 2003 20, Society for Computational Economics.
    2. Nigel Gilbert & Pietro Terna, 2000. "How to build and use agent-based models in social science," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 1(1), pages 57-72, March.
    3. Iori, Giulia, 2004. "An analysis of systemic risk in alternative securities settlement architectures," Working Paper Series 404, European Central Bank.
    4. Iori, Giulia & Jafarey, Saqib, 2001. "Criticality in a model of banking crises," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 299(1), pages 205-212.
    5. Martin Shubik, 2001. "Money and the Monetization of Credit," Working Papers 01-12-080, Santa Fe Institute.
    6. Vercelli, Alessandro, 2000. "Structural financial instability and cyclical fluctuations," Structural Change and Economic Dynamics, Elsevier, vol. 11(1-2), pages 139-156, July.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • G - Financial Economics

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