Under socialism it was neither possible nor necessary to accumulate significant levels of personal wealth. The acceleration of economic reform in the last decade has brought dramatic increases in income and investment opportunities. At the same time, it has also reduced social protections provided by the state welfare system. As a response to these changes urban average household net total weal...

A network induced by wealth is a social network model in which wealth induces individuals to participate as nodes, and every node in the network produces and accumulates wealth utilizing its links. More specifically, at every time step a new node is added to the network, and a link is created between one of the existing nodes and the new node. Innate wealthproducing ability is randomly assigned...

We postulate a continuous?time heterogeneous agent model with financial sector and households to study the nonlinear linkages between aggregate variables. In our model, interaction supply of bonds by precautionary demand for produces significant endogenous risk . This makes economy transition high?leverage region low?leverage region, which, in turn, creates state dependence impulse responses: s...