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Volume 2018 (2018), Article ID 1843792, 16 pages
Research Article

Credit Risk Contagion in an Evolving Network Model Integrating Spillover Effects and Behavioral Interventions

1School of Economics and Management, Nanjing Tech University, Nanjing 211816, China
2School of Management and Engineering, Nanjing University, Nanjing 210093, China

Correspondence should be addressed to Binqing Xiao and Haifei Liu

Received 25 October 2017; Accepted 8 January 2018; Published 6 March 2018

Academic Editor: Thiago C. Silva

Copyright © 2018 Tingqiang Chen et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


We introduce an evolving network model of credit risk contagion in the credit risk transfer (CRT) market. The model considers the spillover effects of infected investors, behaviors of investors and regulators, emotional disturbance of investors, market noise, and CRT network structure on credit risk contagion. We use theoretical analysis and numerical simulation to describe the influence and active mechanism of the same spillover effects in the CRT market. We also assess the reciprocal effects of market noises, risk preference of investors, and supervisor strength of financial market regulators on credit risk contagion. This model contributes to the explicit investigation of the connection between the factors of market behavior and network structure. It also provides a theoretical framework for considering credit risk contagion in an evolving network context, which is greatly relevant for credit risk management.