• Corpus ID: 152868807

Global recessions as a cascade phenomenon with heterogenous, interacting agents

@article{Ormerod2008GlobalRA,
  title={Global recessions as a cascade phenomenon with heterogenous, interacting agents},
  author={Paul Ormerod},
  journal={arXiv: General Finance},
  year={2008}
}
  • P. Ormerod
  • Published 10 July 2008
  • Economics
  • arXiv: General Finance
I examine global recessions as a cascade phenomenon. In other words, how recessions arising in one or more countries might percolate across a network of connected economies. A heterogeneous agent based model is set up in which the agents are Western economies. A country has a probability of entering a recession in any given year and one of emerging from it the next. In addition, the agents have a unique threshold propensity to import a recession from the agents with which they have the… 
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