Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Too dynamic to fail. Empirical support for an autocatalytic model of
  Minsky's financial instability hypothesis   Solomon and Golo [1] have recently proposed an autocatalytic
(self-reinforcing) feedback model which couples a macroscopic system parameter
(the interest rate), a microscopic parameter that measures the distribution of
the states of the individual agents (the number of firms in financial
difficulty) and a peer-to-peer network effect (contagion across supply chain
financing). In this model, each financial agent is characterized by its
resilience to the interest rate. Above a certain rate the interest due on the
firm's financial costs exceeds its earnings and the firm becomes susceptible to
failure (ponzi). For the interest rate levels under a certain threshold level,
the firm loans are smaller then its earnings and the firm becomes 'hedge.' In
this paper, we fit the historical data (2002-2009) on interest rate data into
our model, in order to predict the number of the ponzi firms. We compare the
prediction with the data taken from a large panel of Italian firms over a
period of 9 years. We then use trade credit linkages to discuss the connection
between the ponzi density and the network percolation.
  We find that the 'top-down'-'bottom-up' positive feedback loop accounts for
most of the Minsky crisis accelerator dynamics. The peer-to-peer ponzi
companies contagion becomes significant only in the last stage of the crisis
when the ponzi density is above a critical value. Moreover the ponzi contagion
is limited only to the companies that were not dynamic enough to substitute
their distressed clients with new ones. In this respect the data support a view
in which the success of the economy depends on substituting the static
'supply-network' picture with an interacting dynamic agents one.

31
The categories of this paper are: ao-sci
11
The categories of this paper are: hep-lat
3
The categories of this paper are: physics
7
The categories of this paper are: hep-th
4
The categories of this paper are: cond-mat
25
The categories of this paper are: patt-sol
1
The categories of this paper are: cs
34
The categories of this paper are: chem-ph
9
The categories of this paper are: nlin
28
The categories of this paper are: alg-geom
19
The categories of this paper are: eess
18
The categories of this paper are: econ
8
The categories of this paper are: hep-ex
35
The categories of this paper are: mtrl-th
15
The categories of this paper are: nucl-ex
37
The categories of this paper are: supr-con