{"id":659,"date":"2014-01-09T13:00:23","date_gmt":"2014-01-09T12:00:23","guid":{"rendered":"http:\/\/mathfinance.sns.it\/new_site\/?p=659"},"modified":"2015-07-17T13:55:00","modified_gmt":"2015-07-17T12:55:00","slug":"youngna-choi-financial-instability-contagion-a-dynamical-systems-approach","status":"publish","type":"post","link":"http:\/\/mathfinance.sns.it\/index.php\/youngna-choi-financial-instability-contagion-a-dynamical-systems-approach\/","title":{"rendered":"Youngna Choi, \u201cFinancial Instability Contagion: a Dynamical Systems Approach\u201d"},"content":{"rendered":"<p style=\"text-align: center;\"><span lang=\"IT\">Thursday January\u00a09<span style=\"font-size: 12px; line-height: 0px;\">\u00a0<\/span>\u00a02014<\/span><br \/>\n13.00<br \/>\nScuola Normale Superiore<br \/>\nAula\u00a0Bianchi<\/p>\n<p style=\"text-align: center;\"><strong>Youngna Choi<br \/>\n<\/strong>Montclair State University<\/p>\n<p style=\"text-align: center;\" align=\"center\"><strong><span lang=\"EN-GB\">Abstract<br \/>\n<\/span><\/strong><\/p>\n<p style=\"text-align: center;\">We build a multi-agent dynamical system for the global economy to investigate and analyze financial crises. The agents are large aggregates of a subeconomy, and the global economy is a collection of subeconomies. We use well-known theories of dynamical systems to represent a financial crisis as propagation of a negative shock on wealth due the breakage of a financial equilibrium. We first extend the framework of the market instability indicator, an early warning signal defined for a single economy as the spectral radius of the Jacobian matrix of the wealth dynamical system. Then, we formulate a quantitative definition of instability contagion in terms thereof. Finally, we analyze the mechanism of instability contagion for both single and multiple economies. Our contribution is to provide a methodology to quantify and monitor the level of instability in sectors and stages of a structured global economic model and how it may propagate between its components.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thursday January\u00a09\u00a0\u00a02014 13.00 Scuola Normale Superiore Aula\u00a0Bianchi Youngna Choi Montclair State University Abstract We build a multi-agent dynamical system for the global economy to investigate and analyze financial crises. The agents are large aggregates of a subeconomy, and the global economy is a collection of subeconomies. We use well-known theories of dynamical systems to represent [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[13],"tags":[],"_links":{"self":[{"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/posts\/659"}],"collection":[{"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/comments?post=659"}],"version-history":[{"count":1,"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/posts\/659\/revisions"}],"predecessor-version":[{"id":660,"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/posts\/659\/revisions\/660"}],"wp:attachment":[{"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/media?parent=659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/categories?post=659"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/mathfinance.sns.it\/index.php\/wp-json\/wp\/v2\/tags?post=659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}