Models of financial stability and their application in stress tests

We review heterogeneous agent models of financial stability and their application in stress tests. In contrast to the mainstream approach, which relies heavily on the rational expectations assumption and focuses on situations where it is possible to compute an equilibrium, this approach typically us...

Full description

Bibliographic Details
Main Authors: Aymanns, C, Farmer, J, Kleinnijenhuis, A, Wetzer, T
Format: Book section
Published: Elsevier 2018