|
EconStor >
Claremont McKenna College >
Department of Economics, Claremont McKenna College >
Claremont Colleges Working Papers in Economics, Department of Economics, Claremont McKenna College >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/31433
|
| | |
| Title: | | The emergence of correlations in studies of global economic inter-dependence and contagion  |
| Authors: | | Friedman, Eric J. Johnson, Simon Landsberg, A. S. |
| Editors: | | Claremont Institute for Economic Policy Studies |
| Issue Date: | | 2003 |
| Series/Report no.: | | Working paper series // Claremont Institute for Economic Policy Studies 2002-35 |
| Abstract: | | We construct a simple firm-based automata model for global economic inter-dependence of countries using modern notions of self-organized criticality and recently developed dynamical-renormalization-group methods (e.g., L. Pietronero et al., Phys. Rev. Lett., 72(11):1690 (1994); J. Hasty and K. Wiesenfeld, Phys. Rev. Lett., 81(8):1722, (1998)). 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. |
| JEL: | | J1 J2 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Claremont Colleges Working Papers in Economics, Department of Economics, Claremont McKenna College
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/31433
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|