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Controlling complex networked systems to a desired state is a key research goal in contemporary science. Despite recent advances in studying the impact of network topology on controllability, a comprehensive understanding of the synergistic…

Optimization and Control · Mathematics 2014-08-04 Chen Zhao , Wen-Xu Wang , Yang-Yu Liu , Jean-Jacques Slotine

In a system containing a large number of interacting stochastic processes, there will typically be many non-zero correlation coefficients. This makes it difficult to either visualize the system's inter-dependencies, or identify its dominant…

Other Condensed Matter · Physics 2011-09-06 Mark McDonald , Omer Suleman , Stacy Williams , Sam Howison , Neil F. Johnson

Over the last two decades, financial systems have been studied and analysed from the perspective of complex networks, where the nodes and edges in the network represent the various financial components and the strengths of correlations…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Sunil Kumar , Yasharth Yadav , Anirban Chakraborti

The NK model has been used widely to explore aspects of natural evolution and complex systems. This paper introduces a modified form of the NK model for exploring distributed control in complex systems such as organisations, social…

Neural and Evolutionary Computing · Computer Science 2020-04-22 Larry Bull

A great deal of academic and theoretical work has been dedicated to optimal liquidation of large orders these last twenty years. The optimal split of an order through time (`optimal trade scheduling') and space (`smart order routing') is of…

Trading and Market Microstructure · Quantitative Finance 2013-02-20 Charles-Albert Lehalle

A (control) network over a finite ring is proposed. Using semi-tensor product (STP) of matrices, a set of algebraic equations are provided to verify whether a finite set with two binary operators is a ring. It is then shown that the…

Systems and Control · Electrical Eng. & Systems 2021-10-14 Daizhan Cheng

This paper presents a pioneering approach for simulation of economic activity, policy implementation, and pricing of goods in token economies. The paper proposes a formal analysis framework for wealth distribution analysis and simulation of…

General Finance · Quantitative Finance 2024-01-17 Rem Sadykhov , Geoffrey Goodell , Denis de Montigny , Martin Schoernig , Philip Treleaven

Achieving international food security requires improved understanding of how international trade networks connect countries around the world through the import-export flows of food commodities. The properties of food trade networks are…

General Finance · Quantitative Finance 2017-11-20 Sofia Torreggiani , Giuseppe Mangioni , Michael J. Puma , Giorgio Fagiolo

Credit rating is an analysis of the credit risks associated with a corporation, which reflects the level of the riskiness and reliability in investing, and plays a vital role in financial risk. There have emerged many studies that implement…

Machine Learning · Computer Science 2020-12-04 Bojing Feng , Haonan Xu , Wenfang Xue , Bindang Xue

We study financial systems from a game-theoretic standpoint. A financial system is represented by a network, where nodes correspond to firms, and directed labeled edges correspond to debt contracts between them. The existence of cycles in…

Computer Science and Game Theory · Computer Science 2021-07-23 Panagiotis Kanellopoulos , Maria Kyropoulou , Hao Zhou

Sustainable financial markets play an important role in the functioning of human society. Still, the detection and prediction of risk in financial markets remain challenging and draw much attention from the scientific community. Here we…

Physics and Society · Physics 2018-11-27 Jingfang Fan , Keren Cohen , Louis M. Shekhtman , Sibo Liu , Jun Meng , Yoram Louzoun , Shlomo Havlin

Many new models for measuring financial contagion have been presented recently. While these models have not been specified for investment funds directly, there are many similarities that could be explored to extend the models. In this work…

Risk Management · Quantitative Finance 2016-03-14 Leonardo dos Santos Pinheiro , Flavio Codeco Coelho

The small-world phenomenon has been already the subject of a huge variety of papers, showing its appeareance in a variety of systems. However, some big holes still remain to be filled, as the commonly adopted mathematical formulation…

Statistical Mechanics · Physics 2009-11-07 Vito Latora , Massimo Marchiori

The topological properties of interbank networks have been discussed widely in the literature mainly because of their relevance for systemic risk. Here we propose to use the Stochastic Block Model to investigate and perform a model…

Risk Management · Quantitative Finance 2017-10-25 Paolo Barucca , Fabrizio Lillo

In this technical note, we study the controllability of diffusively coupled networks from a graph theoretic perspective. We consider leader-follower networks, where the external control inputs are injected to only some of the agents, namely…

Systems and Control · Computer Science 2016-08-17 A. Yasin Yazicioglu , Waseem Abbas , Magnus Egerstedt

Cross-border equity and long-term debt securities portfolio investment networks are analysed from 2002 to 2012, covering the 2008 global financial crisis. They serve as network-proxies for measuring the robustness of the global financial…

General Finance · Quantitative Finance 2014-03-05 Andreas Joseph , Stephan Joseph , Guanrong Chen

Theory of complex networks proved successful in the description of a variety of static networks ranging from biology to computer and social sciences and to economics and finance. Here we use network models to describe the evolution of a…

Physics and Society · Physics 2014-08-25 Zhen Zhu , Federica Cerina , Alessandro Chessa , Guido Caldarelli , Massimo Riccaboni

This work uses the stocks of the 197 largest companies in the world, in terms of market capitalization, in the financial area in the study of causal relationships between them using Transfer Entropy, which is calculated using the stocks of…

General Finance · Quantitative Finance 2014-08-11 Leonidas Sandoval Junior

Advanced economies exhibit a high degree of sophistication in the creation of various products. While critical to such sophistication, the nature and underlying structure of the interactions taking place inside production processes remain…

General Economics · Economics 2023-08-01 Hardik Rajpal , Omar A Guerrero

We follow up on the study of correlations between GDP's of rich countries. We analyze web-downloaded data on GDP that we use as individual wealth signatures of the country economical state. We calculate the yearly fluctuations of the GDP.…

Physics and Society · Physics 2012-09-25 M. Ausloos , R. Lambiotte