Abstract
In this paper, we construct a dynamic guarantee network model. Based on the constructed model, the dynamic evolution of risk contagion is researched by means of simulation methods. The risk contagion research is carried out from three aspects:guarantee mechanism, partner selection mechanism, and production parameter. The research shows that: (1) Firm size distribution takes on a power-law tail. (2) Guarantee network provides a channel for risk contagion and aggravates risk contagion among firms. (3) The type of partner selection mechanism has an impact on risk contagion. Risk cognation in the net worth mechanism is more serious in comparison to the random mechanism. (4) Risk contagion among firms is the increasing function of the production parameter φ.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
