Contagion in an interacting economy
نویسندگان
چکیده
We investigate the credit risk model defined in Hatchett and Kühn [18] under more general assumptions, in particular using a general degree distribution for sparse graphs. Expanding upon earlier results, we show that the model is exactly solvable in the N →∞ limit and demonstrate that the exact solution is described by the message-passing approach outlined in Karrer and Newman [21], generalized to include heterogeneous agents and couplings. We provide comparisons with simulations in the case of a scale-free graph.
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