Mathematical modeling and optimal control of the impact of rumors on the banking crisis
The bank run phenomenon, mostly due to rumor spread about the financial health of given financial institutions, is prejudicious to the stability of financial systems. In this paper, by using the epidemiological approach, we propose a nonlinear model for describing the impact of rumor on the banking...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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De Gruyter
2022-05-01
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| Series: | Demonstratio Mathematica |
| Subjects: | |
| Online Access: | https://doi.org/10.1515/dema-2022-0007 |
| _version_ | 1811203715925803008 |
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| author | Tadmon Calvin Njike-Tchaptchet Eric Rostand |
| author_facet | Tadmon Calvin Njike-Tchaptchet Eric Rostand |
| author_sort | Tadmon Calvin |
| collection | DOAJ |
| description | The bank run phenomenon, mostly due to rumor spread about the financial health of given financial institutions, is prejudicious to the stability of financial systems. In this paper, by using the epidemiological approach, we propose a nonlinear model for describing the impact of rumor on the banking crisis spread. We establish conditions under which the crisis dies out or remains permanent. We also solve an optimal control problem focusing on the minimization, at the lowest cost, of the number of stressed banks, as well as the number of banks undergoing the restructuring process. Numerical simulations are performed to illustrate theoretical results obtained. |
| first_indexed | 2024-04-12T02:59:31Z |
| format | Article |
| id | doaj.art-6f9877ac1e2d439e88cf2176de55f74c |
| institution | Directory Open Access Journal |
| issn | 2391-4661 |
| language | English |
| last_indexed | 2024-04-12T02:59:31Z |
| publishDate | 2022-05-01 |
| publisher | De Gruyter |
| record_format | Article |
| series | Demonstratio Mathematica |
| spelling | doaj.art-6f9877ac1e2d439e88cf2176de55f74c2022-12-22T03:50:42ZengDe GruyterDemonstratio Mathematica2391-46612022-05-015519011810.1515/dema-2022-0007Mathematical modeling and optimal control of the impact of rumors on the banking crisisTadmon Calvin0Njike-Tchaptchet Eric Rostand1Department of Mathematics and Computer Science, Faculty of Science, University of Dschang, P.O. Box 67, Dschang-Cameroon, CameroonDepartment of Mathematics and Computer Science, Faculty of Science, University of Dschang, P.O. Box 67, Dschang-Cameroon, CameroonThe bank run phenomenon, mostly due to rumor spread about the financial health of given financial institutions, is prejudicious to the stability of financial systems. In this paper, by using the epidemiological approach, we propose a nonlinear model for describing the impact of rumor on the banking crisis spread. We establish conditions under which the crisis dies out or remains permanent. We also solve an optimal control problem focusing on the minimization, at the lowest cost, of the number of stressed banks, as well as the number of banks undergoing the restructuring process. Numerical simulations are performed to illustrate theoretical results obtained.https://doi.org/10.1515/dema-2022-0007nonautonomous differential equationbanking crisisrumor spreadoptimal control91g8034d0534h05 |
| spellingShingle | Tadmon Calvin Njike-Tchaptchet Eric Rostand Mathematical modeling and optimal control of the impact of rumors on the banking crisis Demonstratio Mathematica nonautonomous differential equation banking crisis rumor spread optimal control 91g80 34d05 34h05 |
| title | Mathematical modeling and optimal control of the impact of rumors on the banking crisis |
| title_full | Mathematical modeling and optimal control of the impact of rumors on the banking crisis |
| title_fullStr | Mathematical modeling and optimal control of the impact of rumors on the banking crisis |
| title_full_unstemmed | Mathematical modeling and optimal control of the impact of rumors on the banking crisis |
| title_short | Mathematical modeling and optimal control of the impact of rumors on the banking crisis |
| title_sort | mathematical modeling and optimal control of the impact of rumors on the banking crisis |
| topic | nonautonomous differential equation banking crisis rumor spread optimal control 91g80 34d05 34h05 |
| url | https://doi.org/10.1515/dema-2022-0007 |
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