Research on credit risk contagion considering the interaction of relationships

  • Qian Qian
  • , Yong Zhou
  • , Xiangrui Chao*
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Scopus citations

Abstract

In reality, there are two or more kinds of relationship between enterprises. Under the interaction of relationships, the path and intensity of credit risk contagion usually be changed, which makes the credit risk contagion more complex. Based on this, a dual-layer network is used to describe the topological structure of enterprise network within coexistence of asset and transaction relationship. A credit risk contagion model considering the interaction of relationships is constructed. And the influence of interaction on credit risk contagion is investigated. The results show that: Compared with the only asset relationship, the risk contagion threshold is smaller when the asset and transaction correlation coexist; the dual-layer network topology is an important factor affecting the contagion effect of credit risk; reducing the similarity of the dual-layer network can restrain the contagion of credit risk among enterprises.

Original languageEnglish
Pages (from-to)37-45
Number of pages9
JournalXitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice
Volume42
Issue number1
DOIs
StatePublished - 25 Jan 2022

Keywords

  • Asset relationship
  • Contagion effect
  • Credit risk
  • Dual-layer network
  • Transaction relationship

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