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Contagion of Financial Crises
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This book provides an extensive range of definitions, causes and measurements of contagion in the literature. First, it reviews the causes of contagion, the available transmission channels and the current empirical methodology in the literature. Moreover, I provide an analysis of the existence of contagion via a probit model as in Eichengreen et al (1997). Eichengreen et al (1997) have basically two findings: (1) that "currency crises appear to pass "contagiously" from one country to another", (2) and that commercially related countries have more tendencies to be caught up with contagion than others which share almost the same macroeconomic situation.
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