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Controlling complex networks is of paramount importance in science and engineering. Despite the recent development of structural-controllability theory, we continue to lack a framework to control undirected complex networks, especially…

Physics and Society · Physics 2013-10-23 Zhengzhong Yuan , Chen Zhao , Zengru Di , Wen-Xu Wang , Ying-Cheng Lai

In the wake of the 2008 financial crisis the role of strongly interconnected markets in fostering systemic instability has been increasingly acknowledged. Trade networks of commodities are susceptible to deleterious cascades of supply…

Economics · Quantitative Finance 2015-04-15 Peter Klimek , Michael Obersteiner , Stefan Thurner

In order to improve the resilience of computer infrastructure against cyber attacks and finding ways to mitigate their impact we need to understand their structure and dynamics. Here we propose a novel network-based influence spreading…

Social and Information Networks · Computer Science 2025-09-03 Vesa Kuikka , Lauri Pykälä , Tuomas Takko , Kimmo Kaski

The instability of the financial system as experienced in recent years and in previous periods is often linked to credit defaults, i.e., to the failure of obligors to make promised payments. Given the large number of credit contracts, this…

Risk Management · Quantitative Finance 2015-06-17 Thilo A. Schmitt , Desislava Chetalova , Rudi Schäfer , Thomas Guhr

We analyse time series of CDS spreads for a set of major US and European institutions on a pe- riod overlapping the recent financial crisis. We extend the existing methodology of {\epsilon}-drawdowns to the one of joint {\epsilon}-drawups,…

Risk Management · Quantitative Finance 2015-06-05 Rahul Kaushik , Stefano Battiston

The networked nature of supply chains makes them susceptible to systemic risk, where local firm failures can propagate through firm interdependencies that can lead to cascading supply chain disruptions. The systemic risk of supply chains…

General Economics · Economics 2025-05-01 Giacomo Zelbi , Leonardo Niccolò Ialongo , Stefan Thurner

In normal times, it is assumed that financial institutions operating in non-overlapping sectors have complementary and distinct outcomes, typically reflected in mostly uncorrelated outcomes and asset returns. Such is the reasoning behind…

General Economics · Economics 2021-01-19 Sayuj Choudhari , Richard Licheng Zhu

Networked structures arise in a wide array of different contexts such as technological and transportation infrastructures, social phenomena, and biological systems. These highly interconnected systems have recently been the focus of a great…

Statistical Mechanics · Physics 2009-11-10 Alain Barrat , Marc Barthelemy , Romualdo Pastor-Satorras , Alessandro Vespignani

The interaction of distinct units in physical, social, biological and technological systems naturally gives rise to complex network structures. Networks have constantly been in the focus of research for the last decade, with considerable…

Physics and Society · Physics 2012-08-20 Tamás Nepusz , Tamás Vicsek

Systemic risk arises as a multi-layer network phenomenon. Layers represent direct financial exposures of various types, including interbank liabilities, derivative- or foreign exchange exposures. Another network layer of systemic risk…

Risk Management · Quantitative Finance 2018-03-13 Anton Pichler , Sebastian Poledna , Stefan Thurner

Understanding how credit flows through inter-firm networks is critical for assessing financial stability and systemic risk. In this study, we introduce DebtStreamness, a novel metric inspired by trophic levels in ecological food webs, to…

To understand the controllability of complex networks is a forefront problem relevant to different fields of science and engineering. Despite recent advances in network controllability theories, an outstanding issue is to understand the…

Physics and Society · Physics 2016-07-01 Zhesi Shen , Wen-Xu Wang , Chen Zhao , Ying-Cheng Lai

This paper introduces forward-looking measures of the network connectedness of fears in the financial system, arising due to the good and bad beliefs of market participants about uncertainty that spreads unequally across a network of banks.…

General Finance · Quantitative Finance 2020-10-27 Jozef Barunik , Mattia Bevilacqua , Radu Tunaru

Corporate credit rating (CCR) plays a very important role in the process of contemporary economic and social development. How to use credit rating methods for enterprises has always been a problem worthy of discussion. Through reading and…

Machine Learning · Computer Science 2023-09-27 Bojing Feng , Xi Cheng , Dan Li , Zeyu Liu , Wenfang Xue

The theory of multilayer networks is in its early stages, and its development provides vital methods for understanding complex systems. Multilayer networks, in their multiplex form, have been introduced within the last three years to…

Computational Finance · Quantitative Finance 2017-04-04 Antoaneta Serguieva

Cascading failures represent a fundamental threat to the integrity of complex systems, often precipitating a comprehensive collapse across diverse infrastructures and financial networks. This research articulates a robust and pragmatic…

Adaptation and Self-Organizing Systems · Physics 2024-06-28 Karan Singh , V. K. Chandrasekar , D. V. Senthilkumar

As interconnected systems proliferate, safeguarding complex infrastructures against an escalating array of cyber threats has become an urgent challenge. The increasing number of vulnerabilities, combined with resource constraints, makes…

Cryptography and Security · Computer Science 2025-02-18 Yuning Jiang , Nay Oo , Qiaoran Meng , Hoon Wei Lim , Biplab Sikdar

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 chapter aims at reviewing complex networks models and methods that were either developed for or applied to socioeconomic issues, and pertinent to the theme of New Economic Geography. After an introduction to the foundations of the…

Physics and Society · Physics 2015-04-22 Luis M. Varela , Giulia Rotundo , Marcel Ausloos , Jesus Carrete

Following several episodes of financial market turmoil in recent decades, changes in systemic risk have drawn growing attention. Therefore, we propose surveillance schemes for systemic risk, which allow to detect misspecified systemic risk…

Econometrics · Economics 2026-01-14 Timo Dimitriadis , Yannick Hoga