Affiliation:
1. Department of Mathematics and Computer Science , Faculty of Science , University of Dschang , P.O Box 67 Dschang , Cameroon
Abstract
Abstract
In this paper, we develop a stochastic model to analyze how financial contagion may affect economic activity.
In the deterministic case, we show that, according to specific parameter values, the economy may converge either to a stress-free equilibrium or to a stressed equilibrium: in the former situation, the level of economic growth is maximal, while in the latter, it is reduced by financial contagion.
In the stochastic case, we compute a value around which the level of economic growth oscillates.
Numerical simulations are performed to illustrate theoretical results obtained.
Subject
Applied Mathematics,Discrete Mathematics and Combinatorics,Statistics, Probability and Uncertainty,Safety, Risk, Reliability and Quality,Statistics and Probability
Reference34 articles.
1. F. Allen and D. Gale,
Financial contagion,
J. Polit. Econ 108 (2000), 1–33.
2. J. L. Arcand, E. Berkes and U. Panizza,
Too much finance?,
J. Econ. Growth 20 (2015), 105–148.
3. B. Bolos, V. Bacarea and M. Marusteri,
Approaching economic issues through epidemiologyan introduction to business epidemiology,
Romanian J. Econ. Forecasting 14 (2011), 257–276.
4. A. Boyko, V. Kukartsev and V. Tynchenko,
Simulation-dynamic model of long-term economic growth using solow model,
J. Phys. Conf. Ser. 1 (2019), no. 1353, 1–6.
5. S. Brusco and F. Castiglionesi,
Liquidity coinsurance, moral hazard, and financial contagion,
J. Finance 62 (2007), no. 5, 2275–2302.
Cited by
4 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献