The model combines the contagion process of risk, the network structural features and the behavior characteristics of banking crisis.
Note that a network modelling the initiation of connections is not automatically a network indicating social contagion; this will depend on the application considered.
Health and military experts, citing new models of how the contagion can spread and new disclosures about how the weaponized virus can sail on the wind, have recently argued that limited, local vaccinations could produce thousands if not millions of needless infections and deaths.
Since then, they have been used to model financial contagion in credit markets [16, 17], viral videos on the web [18], terrorist activity in Indonesia [19], and the spread of infectious disease [20].
Many important biological problems can be modeled as contagion diffusion processes over interaction networks.
We describe the default model in "Default contagion model" section and the market model in "The market model" section.
The latter are modeled using a contagion credit risk model with interacting default intensities, see also Jarrow and Yu (2001) for more explicit examples and Frey and Backhaus (2008) for a theoretical illustration.
This work concerns the modeling of contagion and herding effects which can cause significant movements of prices and volatilities.
To analyze the spreading and cessation of them, rumor transmissions are often modeled as social contagion processes.
The contagion is already evident.
