Banking Networks and Economic Growth: From Idiosyncratic Shocks to Aggregate Fluctuations

2021 ◽  
Author(s):  
Shohini Kundu ◽  
Nishant Vats
Keyword(s):  
Economic Growth ◽  
Aggregate Fluctuations ◽  
Idiosyncratic Shocks ◽  
Banking Networks

scholarly journals Idiosyncratic Shocks and Aggregate Fluctuations in an Emerging Market

2021 ◽  
Vol 2021 (289) ◽  
pp. 1
Author(s):  
Damiano Sandri ◽  
Francesco Grigoli ◽  
Emiliano Luttini
Keyword(s):  
Emerging Market ◽  
Aggregate Fluctuations ◽  
Idiosyncratic Shocks

The asymmetric Brazilian input–output network

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jennifer Gonçalves ◽  
Raul Matsushita ◽  
Sergio Da Silva
Keyword(s):  
Design Methodology ◽  
Asymmetric Structure ◽  
Input Output ◽  
Aggregate Fluctuations ◽  
Content Type ◽  
Generalized Pareto ◽  
Idiosyncratic Shocks ◽  
The Us ◽  
High Connectivity ◽  
Practical Implications

PurposeThe authors observed few sectors with many connections and many sectors with few connections, “in the Brazilian input-output network,” which meant that sectoral idiosyncratic shocks may lead to aggregate fluctuations.Design/methodology/approachThe authors considered the Brazilian input–output tables for the years 2010 and 2015 and found a significant asymmetry in the roles that sectors play as input suppliers to others.FindingsGeneralized Pareto exponents decreased from one period to the other, which suggested that the input–output network has become more vulnerable to shocks.Practical implicationsThe authors identified real estate as the most important sector and, given its high connectivity, shocks to it could become a major driver of the Brazilian business cycle.Originality/valueThis is the first paper examining the asymmetric structure of the Brazilian input–output table, and results are compared with those for the US table.

COMPLEX DYNAMICS AND FINANCIAL FRAGILITY IN AN AGENT-BASED MODEL

2003 ◽  
Vol 06 (03) ◽  
pp. 267-282 ◽  
Author(s):  
MAURO GALLEGATI ◽  
GIANFRANCO GIULIONI ◽  
NOZOMI KICHIJI
Keyword(s):  
Financial Markets ◽  
Complex Dynamics ◽  
Balance Sheet ◽  
Financial Fragility ◽  
Aggregate Level ◽  
Aggregate Fluctuations ◽  
Firm Level ◽  
Large Aggregate ◽  
Agent Based ◽  
Idiosyncratic Shocks

We model an agent-based economy in which heterogeneous agents (firms and a bank) interact in the financial markets. The heterogeneity is due to the balance sheet conditions and to size. In our simulations, at the aggregate level, output displays changes in trend and volatility giving rise to complex dynamics. The average solvency and liquidity ratios peak during recessions as empirical analysis shows. At the firm level the model generates: (i) firm sizes left-skewed distributed, (ii) growth rates Laplace distributed. Furthermore, small idiosyncratic shocks can generate large aggregate fluctuations.

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