Digital Library

of the European Council for Modelling and Simulation

Title:

Modelling Economic Crises In Hua He Framework

Authors:

Nora Felfoeldi-Szuecs, Peter Juhasz, Gabor Kuerthy, Janos Szaz, Agnes Vidovics-Dancs

Published in:

(2021). ECMS 2021, 35^th Proceedings
Edited by: Khalid Al-Begain, Mauro Iacono, Lelio Campanile, Andrzej Bargiela, European Council for Modelling and Simulation.

DOI: http://doi.org/10.7148/2021

ISSN: 2522-2422 (ONLINE)

ISSN: 2522-2414 (PRINT)

ISSN: 2522-2430 (CD-ROM)

ISBN: 978-3-937436-72-2
ISBN: 978-3-937436-73-9(CD)

Communications of the ECMS , Volume 35, Issue 1, June 2021,

United Kingdom

Citation format:

Nora Felfoeldi-Szuecs, Peter Juhasz, Gabor Kuerthy, Janos Szaz, Agnes Vidovics-Dancs (2021). Modelling Economic Crises In Hua He Framework, ECMS 2021 Proceedings Edited By: Khalid Al-Begain, Mauro Iacono, Lelio Campanile, Andrzej Bargiela European Council for Modeling and Simulation. doi: 10.7148/2021-0095

DOI:

https://doi.org/10.7148/2021-0095

Abstract:

In our paper we model firms’ liquidity using the Hua He methodology. We investigate how cooperation of firms improve the possibilites of liquidity management. During a crisis, various effects identified in the literature hurt firms’ liquidity position and lead to increased bankruptcy risk. We may counterbalance these adverse effects by providing immediate cash transfers and granting periodic cash flow transfers or additional credit lines. Cooperating with peers pays off. The importance of liquidity transfer between agents is higher during a crisis than in normal economic environment. It contributes to a lower default rate the losses are more moderate as well. Several consequences can be drawn  for policy makers how ameliorate resilience of agents.

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