Effect of financial contagion between real and financial sectors on asset bubbles: A two‐layer network game approach

IF 4.6 Q2 MATERIALS SCIENCE, BIOMATERIALS ACS Applied Bio Materials Pub Date : 2024-09-07 DOI:10.1002/mde.4381
Ruguo Fan, Xiao Xie, Yuanyuan Wang, Jinchai Lin
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Abstract

Understanding the mechanism of asset bubble formation is important for maintaining financial stability and healthy functioning of the economic system. With gradual emphasis on the complex characteristics of financial markets, a new perspective for analyzing the emergence of asset bubbles is emerging: how to integrate the real economy with financial markets composed of heterogeneous individuals. In this study, we propose a two‐layer network game to investigate the impact of financial contagion between the real and financial sectors on asset bubbles. Among their interactions, shadow banking activities in both sectors increase the contagion risk across financial markets and construct a broader financial system. Both credit interactions and peer learning effects are captured in the network framework. Simulating relevant regulation policies, our experiments indicate that regulators should closely monitor returns on assets by setting an upper threshold. Financialization in the real sector significantly exacerbates the formation of asset bubbles, with medium‐level borrowing constraints minimizing bubble dynamics most effectively. The financialization practices of mature industries should be strictly regulated, while innovative industries should be allowed moderately flexible financing practices. The degree of friction within the financial market should be flexibly calibrated for financial institutions and genuine enterprises, aiming to mitigate systemic risks in the financial market while fostering robust growth in the real economy.
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实体部门和金融部门之间的金融传染对资产泡沫的影响:双层网络博弈方法
了解资产泡沫的形成机制对于维护金融稳定和经济体系的健康运行非常重要。随着人们对金融市场复杂特性的逐渐重视,分析资产泡沫产生的新视角正在形成:如何将实体经济与由异质个体组成的金融市场结合起来。在本研究中,我们提出了一个双层网络博弈来研究实体经济和金融部门之间的金融传染对资产泡沫的影响。在它们之间的相互作用中,两个部门的影子银行活动增加了整个金融市场的传染风险,并构建了一个更广泛的金融体系。信用互动和同侪学习效应都在网络框架中得到了体现。在模拟相关监管政策时,我们的实验表明,监管机构应通过设定上限值来密切监控资产回报率。实体部门的金融化会大大加剧资产泡沫的形成,而中等水平的借贷约束能最有效地将泡沫动态降至最低。成熟产业的金融化行为应受到严格监管,而创新产业则应允许适度灵活的融资行为。对金融机构和真正的企业应灵活调整金融市场内部的摩擦程度,旨在降低金融市场的系统性风险,同时促进实体经济的强劲增长。
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来源期刊
ACS Applied Bio Materials
ACS Applied Bio Materials Chemistry-Chemistry (all)
CiteScore
9.40
自引率
2.10%
发文量
464
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