This work starts from an analogy between fnancial systems and ecosystems so that the SIR mathematical approach can be revisited in modeling a kind of risk contagion among fnancial players. We are interested on a specifc type of fnancial risk contagion which identifes frms as the key participants responsible for propagating this contagion. In this respect, the proposed mechanism facilitating this transmission is the Supply Chain framework. In this direction, we focus on a new SIR dynamic with time delay which represents the “fnancial immunity” after recovery. A complete and robust analysis about asymptotic stability is performed for both risk-free and not-free-risk steady states at the long run, by applying Lyapunov functional method. The model is applied to perform some simulations with application in diferent Italian economic sectors.
On the dynamics of a SIR model for a financial risk contagion
Canana' L.;
2024-01-01
Abstract
This work starts from an analogy between fnancial systems and ecosystems so that the SIR mathematical approach can be revisited in modeling a kind of risk contagion among fnancial players. We are interested on a specifc type of fnancial risk contagion which identifes frms as the key participants responsible for propagating this contagion. In this respect, the proposed mechanism facilitating this transmission is the Supply Chain framework. In this direction, we focus on a new SIR dynamic with time delay which represents the “fnancial immunity” after recovery. A complete and robust analysis about asymptotic stability is performed for both risk-free and not-free-risk steady states at the long run, by applying Lyapunov functional method. The model is applied to perform some simulations with application in diferent Italian economic sectors.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
