Related papers: Forest Fire Model as a Supercritical Dynamic Model…
As economic entities become increasingly interconnected, a shock in a financial network can provoke significant cascading failures throughout the system. To study the systemic risk of financial systems, we create a bi-partite banking…
In this paper, a simple dynamical model in which fractal networks are formed by self-organized critical (SOC) dynamics is proposed; the proposed model consists of growth and collapse processes. It has been shown that SOC dynamics are…
Financial crises are known as crashes that result in a sudden loss of value of financial assets in large part and they continue to occur from time to time surprisingly. In order to discover features of the financial network, the pairwise…
Many sociological networks, as well as biological and technological ones, can be represented in terms of complex networks with a heterogeneous connectivity pattern. Dynamical processes taking place on top of them can be very much influenced…
A number of authors have in recent years proposed that the processes of macroevolution may give rise to self-organized critical phenomena which could have a significant effect on the dynamics of ecosystems. In particular it has been…
We study finite-size effects in the self-organized critical forest-fire model by numerically evaluating the tree density and the fire size distribution. The results show that this model does not display the finite-size scaling seen in…
We propose a dynamical model in which a network structure evolves in a self-organized critical (SOC) manner and explain a possible origin of the emergence of fractal and small-world networks. Our model combines a network growth and its…
Forest fire spreading is a complex phenomenon characterized by a stochastic behavior. Nowadays, the enormous quantity of georeferenced data and the availability of powerful techniques for their analysis can provide a very careful picture of…
Banking system crises are complex events that in a short span of time can inflict extensive damage to banks themselves and to the external economy. The crisis literature has so far identified a number of distinct effects or channels that…
Trading activities in financial systems create various channels through which systemic risk can propagate. An important contagion channel is financial fire sales, where a bank failure causes asset prices to fall due to asset liquidation,…
The Drossel-Schwabl Forest Fire Model is one of the best studied models of non-conservative self-organised criticality. However, using a new algorithm, which allows us to study the model on large statistical and spatial scales, it has been…
We study the impact of regulatory capital constraints on fire sales and financial stability in a large banking system using a mean field game model. In our model banks adjust their holdings of a risky asset via trading strategies with…
By treating the financial market as a thermodynamic system, we establish a one-to-one correspondence between thermodynamic variables and economic quantities. Measured by the expected loss under the worst-case scenario, financial risk caused…
Supply chain disruptions constitute an often underestimated risk for financial stability. As in financial networks, systemic risks in production networks arises when the local failure of one firm impacts the production of others and might…
We introduce a general framework for models of cascade and contagion processes on networks, to identify their commonalities and differences. In particular, models of social and financial cascades, as well as the fiber bundle model, the…
One of the most defining features of the global financial network is its inherent complex and intertwined structure. From the perspective of systemic risk it is important to understand the influence of this network structure on default…
We modify the rules of the self-organized critical forest-fire model in one dimension by allowing the fire to jump over holes of $\le k$ sites. An analytic calculation shows that not only the size distribution of forest clusters but also…
We investigate the relevance of {\sl self-organized criticality (SOC)} models in previously published empirical datasets, which includes statistical observations in astrophysics, geophysics, biophysics, sociophysics, and informatics. We…
Financial and economic history is strewn with bubbles and crashes, booms and busts, crises and upheavals of all sorts. Understanding the origin of these events is arguably one of the most important problems in economic theory. In this…
Electric power-systems are one of the most important critical infrastructures. In recent years, they have been exposed to extreme stress due to the increasing demand, the introduction of distributed renewable energy sources, and the…