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Systemic financial risk refers to the simultaneous failure or destabilization of multiple financial institutions, often triggered by contagion mechanisms or common exposures to shocks. In this paper, we present a dynamical model of bank…

Dynamical Systems · Mathematics 2026-03-31 Marco Ioffredi , Stefano Marmi , Matteo Tanzi

We model a network economy with three sectors: downstream firms, upstream firms, and banks. Agents are linked by productive and credit relationships so that the behavior of one agent influences the behavior of the others through network…

General Finance · Quantitative Finance 2010-06-18 Domenico Delli Gatti , Mauro Gallegati , Bruce Greenwald , Alberto Russo , Joseph E. Stiglitz

We propose here a multiplex network approach to investigate simultaneously different types of dependency in complex data sets. In particular, we consider multiplex networks made of four layers corresponding respectively to linear,…

Physics and Society · Physics 2016-06-16 Nicoló Musmeci , Vincenzo Nicosia , Tomaso Aste , Tiziana Di Matteo , Vito Latora

We study the role of contingent convertible bonds (CoCos) in a complex network of interconnected banks. By studying the system's phase transitions, we reveal that the structure of the interbank network is of fundamental importance for the…

General Finance · Quantitative Finance 2023-12-22 Giovanni Calice , Carlo Sala , Daniele Tantari

It is commonly believed that patterns of social ties affect individuals' economic status. Here, we translate this concept into an operational definition at the network level, which allows us to infer the economic wellbeing of individuals…

Physics and Society · Physics 2017-05-24 Shaojun Luo , Flaviano Morone , Carlos Sarraute , Matías Travizano , Hernán A. Makse

The inability to see and quantify systemic financial risk comes at an immense social cost. Systemic risk in the financial system arises to a large extent as a consequence of the interconnectedness of its institutions, which are linked…

A considerable number of texts encountered daily are somehow connected with each other. For example, Wikipedia articles refer to other articles via hyperlinks, scientific papers relate to others via citations or (co)authors, while tweets…

Computation and Language · Computer Science 2025-08-08 Albert Roethel , Maria Ganzha , Anna Wróblewska

Researchers have attempted to model information diffusion and topic trends and lifecycle on online social networks. They have investigated the role of content, social connections and communities, familiarity and behavioral similarity in…

Social and Information Networks · Computer Science 2017-06-06 Kuntal Dey , Saroj Kaushik , L. Venkata Subramaniam

Networks effectively capture interactions among components of complex systems, and have thus become a mainstay in many scientific disciplines. Growing evidence, especially from biology, suggest that networks undergo changes over time, and…

Methodology · Statistics 2020-03-10 Ali Shojaie

Networks are ubiquitous in science and have become a focal point for discussion in everyday life. Formal statistical models for the analysis of network data have emerged as a major topic of interest in diverse areas of study, and most of…

Methodology · Statistics 2009-12-31 Anna Goldenberg , Alice X Zheng , Stephen E Fienberg , Edoardo M Airoldi

Internet finance is a new financial model that applies Internet technology to payment, capital borrowing and lending and transaction processing. In order to study the internal risks, this paper uses the Internet financial risk elements as…

Econometrics · Economics 2020-01-08 Runjie Xu , Chuanmin Mi , Rafal Mierzwiak , Runyu Meng

Interbank deposits (loans and credits) are quite common in banking system all over the world. Such interbank co-operation is profitable for banks but it can also lead to collective financial failures. In this paper we introduce a new model…

Statistical Mechanics · Physics 2009-11-07 A. Aleksiejuk , J. A. Holyst

Threats on the stability of a financial system may severely affect the functioning of the entire economy, and thus considerable emphasis is placed on the analyzing the cause and effect of such threats. The financial crisis in the current…

Risk Management · Quantitative Finance 2014-10-28 Piotr Berman , Bhaskar DasGupta , Lakshmi Kaligounder , Marek Karpinski

We perform a large scale analysis of a list of fintech terms in (i) news and blogs in English language and (ii) professional descriptions of companies operating in many countries. The occurrence and co-occurrence of fintech terms and…

Physics and Society · Physics 2020-08-26 Fabio Ciulla , Rosario N. Mantegna

This systemic risk paper introduces inhomogeneous random financial networks (IRFNs). Such models are intended to describe parts, or the entirety, of a highly heterogeneous network of banks and their interconnections, in the global financial…

General Finance · Quantitative Finance 2019-09-23 T. R. Hurd

This mini-project models propagation of shocks, in time point, through links in connected banks. In particular, financial network of 100 banks out of which 15 are shocked to default (that is, 85.00% of the banks are solvent) is modelled…

Statistical Finance · Quantitative Finance 2024-02-26 Sunday Akukodi Ugwu

We propose to leverage news discourse profiling to model document-level temporal structures for building temporal dependency graphs. Our key observation is that the functional roles of sentences used for profiling news discourse signify…

Computation and Language · Computer Science 2022-10-24 Prafulla Kumar Choubey , Ruihong Huang

In this paper, we propose a dynamical model to capture cascading failures among interconnected organizations in the global financial system. Failures can take the form of bankruptcies, defaults, and other insolvencies. The network that…

Optimization and Control · Mathematics 2023-11-13 Leonardo Stella , Dario Bauso , Franco Blanchini , Patrizio Colaneri

Relational event data, which consist of events involving pairs of actors over time, are now commonly available at the finest of temporal resolutions. Existing continuous-time methods for modeling such data are based on point processes and…

Methodology · Statistics 2018-06-21 Wesley Lee , Bailey K. Fosdick , Tyler H. McCormick

The 2008 financial crisis exposed fundamental vulnerabilities in interconnected banking systems, yet existing frameworks fail to integrate spatial propagation with network contagion mechanisms. This paper develops a unified spatial-network…

Risk Management · Quantitative Finance 2025-11-13 Tatsuru Kikuchi
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