Event

Agent-Based Modeling of Economic Systemic Risk

22 April 2025
Expired!
1:00 pm - 1:30 pm

Location

Library
Metternichgasse 8, 1030 Vienna

Event

Agent-Based Modeling of Economic Systemic Risk

Supply chain disruptions can amplify the economic impact of localized shocks as they propagate through interconnected production networks. This effect was notably observed during the COVID-19 pandemic and the 2011 Japanese earthquake, where initial disruptions triggered cascading effects throughout global supply chains. While previous research on economic systemic risk has largely been confined to industry-level analysis or static supply chain structures, our work introduces a dynamic agent-based model that operates at the firm level. This novel approach incorporates network rewiring mechanisms, allowing us to examine how supply chains adapt to shocks and how these adaptations influence the overall propagation and amplification of idiosyncratic disruptions throughout the economic system.

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