We study the frictions in the patterns of trades in the Euro money market. We characterize the structure of lending relations during the period of recent financial turmoil. We use network-topology method on data from overnight transactions in the Electronic Market for Interbank Deposits (e-Mid)...

We implement a novel method to detect systemically important financial institutions in a network. The method consists in a simple model of distress and losses redistribution derived from the interaction of banks' balance-sheets through bilateral exposures. The algorithm goes beyond the...

We model hierarchical cascades of failures among banks linked through an interdependent network. The interaction among banks include not only direct cross-holding, but also indirect dependency by holding mutual assets outside the banking system. Using data extracted from the European Banking...

Recent financial crises and especially large corporate bankruptcies, have led bank managements and financial authorities to follow and monitor both financial and real sector risks, and to focus on firm failures. Bank of International Settlements, has therefore, taken the decision to include the...

In this paper, a reinforcement learning version of the connections game first analysed by Jackson and Wolinsky is presented and compared with benchmark results of fully informed and rational players. Using an agent-based simulation approach, the main nding is that the pattern of reinforcement...

How individual behaviour is determined or at least influenced by social norms is one of the classic questions of social theory. We consider a norm as a rule guiding individual decisions concerning rituals, beliefs, traditions, and routines. Whenever coordinated behaviour is enforced without the...

The main aim of this paper is to introduce the network averaging technique. This technique is introduced because accurately determining the structure of real networks can be difficult and the network averaging technique provides a proxy for real networks. A second aim is to introduce the...

The aim of this paper is to simulate profit expectations as an emergent property using an agent based model. The paper builds upon adaptive expectations, interactive expectations and small world networks, combining them into a single adaptive interactive profit expectations model (AIE)....

The incorporation of women into the labor market remains a challenge for most countries; likewise, gender gaps are observed in indicators such as employment, unemployment and participation. In this paper we study the role of social norms in the labor market performance per gender; that is, how...

A constituent feature of adaptive complex system are non-linear feedback mechanisms between actors. This makes it often difficult to model and analyse them. Agent-based Computational Economics (ACE) uses computer simulation methods to represent such systems and analyse non-linear processes. The...