The emergence of temporal correlations in a study of global economic interdependence
We develop a simple firm-based automaton model for global economic interdependence of countries using modern notions of self-organized criticality and recently developed dynamical renormalization-group methods. We demonstrate how extremely strong statistical correlations can naturally develop between two countries even if the financial interconnections between those countries remain very weak. Potential policy implications of this result are also discussed.
Year of publication: |
2003
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Authors: | Friedman, Eric ; Johnson, Simon ; Landsberg, A. S. |
Published in: |
Quantitative Finance. - Taylor & Francis Journals, ISSN 1469-7688. - Vol. 3.2003, 4, p. 296-305
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Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
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