Using Agent-Based Models for Analyzing Threats to Financial Stability

Richard Bookstaber ()
Additional contact information
Richard Bookstaber: Office of Financial Research

No 12-03, Working Papers from Office of Financial Research, US Department of the Treasury

Abstract: Existing models of financial instability tend to be based on top-down, partial-equilibrium views of markets and their interactions; they are unable to incorporate the complexity of behavior among heterogeneous firms or the tendency for all types of firms to change their behavior during a crisis. This paper argues that agent-based models (ABMs)--which seek to explain how the behavior of individual firms or "agents" can affect outcomes in complex systems--can make an important contribution to our understanding of potential vulnerabilities and paths through which risks can propagate across the financial system.

Keywords: Agent Based Models; Financial Stability (search for similar items in EconPapers)
Pages: 24 pages
Date: 2012-12-21
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
https://www.financialresearch.gov/working-papers/f ... Bookstaber_Final.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ofr:wpaper:12-03

Access Statistics for this paper

More papers in Working Papers from Office of Financial Research, US Department of the Treasury Contact information at EDIRC.
Bibliographic data for series maintained by Corey Garriott ().