Date of Award

1-1-2012

Document Type

Thesis

Degree Name

M.A.

Department

Economics

First Advisor

Markus Schneider

Keywords

Agent Based Modeling, Fundamental Uncertainty, Value at Risk

Abstract

By applying common financial risk assessment models to the network economy formalized in Delli Gatti et al. (2006), and by contextualizing both in the broader literature on complexity in economic systems, the question of convergence in economic models is addressed. Critically, a formal state condition is identified which can contribute to the emergence of periods of extreme divergence from expected conditions even in a model characterized by restrictive assumptions regarding agent choice and market structure. The strength of the impact of this state condition, here the topology of a credit network, on the dynamics of the economic system is furthermore shown to be highly dependent upon the structure of the market. The existence of such state conditions has fundamental implications for the evaluation of risk and institutional design in economic systems

Provenance

Recieved from ProQuest

Rights holder

Alexander Kent Spray

File size

74 p.

File format

application/pdf

Language

en

Discipline

Economics, Finance

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