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Crises in economic complex networks: Black Swans or Dragon Kings?

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  • Faggini, Marisa
  • Bruno, Bruna
  • Parziale, Anna

Abstract

After the global financial crisis of 2008, the literature paid new attention to economic crises, analysing them according to a network perspective. Assuming this perspective, this paper is aimed at offering an overview of the functioning of the global economy as a complex network, characterized by cascading failures when an extreme event (EE) occurs, and showing that the economic crisis of 2008 was an extreme event with well-identified features and consequently was forecastable.

Suggested Citation

  • Faggini, Marisa & Bruno, Bruna & Parziale, Anna, 2019. "Crises in economic complex networks: Black Swans or Dragon Kings?," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 105-115.
    • Handle: RePEc:eee:ecanpo:v:62:y:2019:i:c:p:105-115
    DOI: 10.1016/j.eap.2019.01.009
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    Cited by:

    1. Jana, Rabin K & Ghosh, Indranil & Goyal, Vinay, 2022. "Spillover nexus of financial stress during black Swan events," Finance Research Letters, Elsevier, vol. 48(C).
    2. Chen, Shi & Huang, Fu-Wei & Lin, Jyh-Horng, 2023. "Green technology choices under the cap-and-trade mechanism with insurer green finance in a dragon-king environment," Energy Economics, Elsevier, vol. 117(C).
    3. Houxing Tang & Zhenzhong Ma & Lei Jing, 2024. "Interfirm Network Structure and Innovation Creation: a Simulation Study," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 7622-7646, June.
    4. Glette-Iversen, Ingrid & Aven, Terje, 2021. "On the meaning of and relationship between dragon-kings, black swans and related concepts," Reliability Engineering and System Safety, Elsevier, vol. 211(C).
    5. Li, Xuelian & Lu, Tinghui & Lin, Jyh-Horng & Lai, Yingkuan, 2023. "Assessing insurer green finance in response to manufacturing carbon emissions trading in a dragon-king environment: A capped barrier cap option approach," Energy Economics, Elsevier, vol. 128(C).

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    More about this item

    Keywords

    Economic crises; Complex networks; Extreme events;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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