Self-organized criticality in a model of collective bank bankruptcies
International Journal of Modern Physics C, 2001.
randomly directed percolationmonte carlobusiness failureeconophysics
The question we address here is of whether phenomena of collective bankruptcies are related to self-organized criticality. In order to answer it we propose a simple model of banking networks based on the random directed percolation. We study effects of one bank failure on the nucleation of contagion phase in a financial market. We recogni...More
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