An endogenous network model of banking systems |
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Authors: | Shouwei Li Xin Sui Qianting Ma |
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Institution: | School of Economics and Management, Southeast University, Nanjing, China |
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Abstract: | In this article, we propose an endogenous network model for banking systems. Starting from the balance sheets of a banking system and its update algorithms, the interbank credit lending was established based on the partner selection mechanism. Through simulation analysis, we find that the endogenous network model displays a structure with multiple liquidity centers, that the in‐degree distribution exhibits a Pareto tail, and that the bank asset distribution is a lognormal distribution with a Pareto tail. © 2016 Wiley Periodicals, Inc. Complexity 21: 512–520, 2016 |
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Keywords: | network structure balance sheets partner selection endogenous network |
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