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Financial Contagion in a Glance: Using Business Network Contagion Patterns
Abstract
The purposes of this chapter are: to provide an overview over usage of financial contagion in detecting crisis; to provide a conceptual framework for investigating financial abnormalities and their potential spread; to provide a taxonomy for financial abnormalities; to provide a taxonomy of transmission channels for economic and financial abnormalities. The approach of this research is largely based on adaptation of medical sciences research to economic research, mainly the adaptation of Epidemiology to economic sciences. The chapter provides means for investigating in a systematic way cases of abnormalities like cascade business failures, cascade regional or national level economy recession based.
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