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This paper presents two cases of random banking data generators based on migration matrices and scoring rules. The banking data generator is a new hope in researches of finding the proving method of comparisons of various credit scoring…

Risk Management · Quantitative Finance 2011-05-17 Karol Przanowski

We argue that the present crisis and stalling economy continuing since 2007 are rooted in the delusionary belief in policies based on a "perpetual money machine" type of thinking. We document strong evidence that, since the early 1980s,…

General Finance · Quantitative Finance 2014-08-26 D. Sornette , P. Cauwels

We use techniques from network science to study correlations in the foreign exchange (FX) market over the period 1991--2008. We consider an FX market network in which each node represents an exchange rate and each weighted edge represents a…

Trading and Market Microstructure · Quantitative Finance 2010-04-13 Daniel J. Fenn , Mason A. Porter , Peter J. Mucha , Mark McDonald , Stacy Williams , Neil F. Johnson , Nick S. Jones

Investigating the ``physics'' of food crises consists in identifying features which are common to all large-scale food crises. One element which stands out is the fact that during a food crisis there is not only a surge in deaths but also a…

Biological Physics · Physics 2019-03-27 Peter Richmond , Bertrand M. Roehner , Qing-hai Wang

In this empirical paper we show that in the months following a crash there is a distinct connection between the fall of stock prices and the increase in the range of interest rates for a sample of bonds. This variable, which is often…

Statistical Mechanics · Physics 2009-10-31 B. M. Roehner

We analyse a multiplex of networks between OECD countries during the decade 2002-2010, which consists of five financial layers, given by foreign direct investment, equity securities, short-term, long-term and total debt securities, and five…

General Finance · Quantitative Finance 2016-02-17 Franco Ruzzenenti , Andreas Joseph , Elisa Ticci , Pietro Vozzella , Giampaolo Gabbi

We propose a statistical model for weighted temporal networks capable of measuring the level of heterogeneity in a financial system. Our model focuses on the level of diversification of financial institutions; that is, whether they are more…

Applications · Statistics 2018-08-15 Juraj Hledik , Riccardo Rastelli

In this paper we contrast the dynamics of the 2022 Ukraine invasion financial crisis with notable financial crises of the 21st century - the dot-com bubble, global financial crisis and COVID-19. We study the similarity in market dynamics…

Statistical Finance · Quantitative Finance 2023-10-11 Nick James , Max Menzies

To mitigate potential contagion from future banking crises, the European Commission recently proposed a framework which would provide for the $\textit{bail-in}$ of bank creditors in the event of failure. In this study, we examine this…

General Finance · Quantitative Finance 2014-04-01 Thomas Conlon , John Cotter

We inspect a possible clustering structure of the corruption perception among 134 countries. Using the average linkage clustering, we uncover a well-defined hierarchy in the relationships among countries. Four main clusters are identified…

Economics · Quantitative Finance 2015-03-06 Michal Paulus , Ladislav Kristoufek

Studying event time series is a powerful approach for analyzing the dynamics of complex dynamical systems in many fields of science. In this paper, we describe the method of event coincidence analysis to provide a framework for quantifying…

Physics and Society · Physics 2016-07-06 Jonathan F. Donges , Carl-Friedrich Schleussner , Jonatan F. Siegmund , Reik V. Donner

During a financial crisis, the capital markets network frequently exhibits a high correlation between returns. We developed a network analysis framework based on daily returns from 42 countries to determine systemic stability. Our network…

Dynamical Systems · Mathematics 2022-01-06 Supanat Kamtue , Pongsak Luangaram , Sirawit Woramongkhon

This paper constructs internationally consistent measures of macroeconomic uncertainty. Our econometric framework extracts uncertainty from revisions in data obtained from standardized national accounts. Applying our model to post-WWII…

Econometrics · Economics 2021-01-01 Andreas Dibiasi , Samad Sarferaz

Using the new data from the OECD-WTO world network of economic activities we construct the Google matrix $G$ of this directed network and perform its detailed analysis. The network contains 58 countries and 37 activity sectors for years…

Statistical Finance · Quantitative Finance 2015-07-14 V. Kandiah , H. Escaith , D. L. Shepelyansky

One of the findings of the recent literature is that the 2008 financial crisis caused reduction in international diversification benefits. To fully understand the possible potential from diversification, we build an empirical model which…

Portfolio Management · Quantitative Finance 2013-09-27 Krenar Avdulaj , Jozef Barunik

We study the co-movement of the 10-year sovereign bond yields of 11 EU countries. Our analysis is focused mainly on changes in co-movement during the financial crisis period, especially around two significant dates - the fall of Lehman…

Economics · Quantitative Finance 2016-03-25 Filip Smolik , Lukas Vacha

Blame games tend to follow major disruptions, be they financial crises, natural disasters or terrorist attacks. To study how the blame game evolves and shapes the dominant crisis narratives is of great significance, as sense-making…

Computation and Language · Computer Science 2019-04-25 Shuailong Liang , Olivia Nicol , Yue Zhang

We test the international applicability of Friedman s famous plucking theory of the business cycle in 12 advanced economies between 1970 and 2021. We find that in countries where labour markets are flexible (Australia, Canada, United…

General Economics · Economics 2023-06-05 Emanuel Kohlscheen , Richhild Moessner , Daniel Rees

Throughout history, many countries have repeatedly experienced large swings in asset prices, which are usually accompanied by large fluctuations in macroeconomic activity. One of the characteristics of the period before major economic…

Theoretical Economics · Economics 2024-08-12 Tomohiro Hirano

The international financial system is currently not yet prepared to face a foreseeable crisis mainly motivated by the dichotomy between the real economy and the virtual economy. Skepticism is widespread even when it comes to investments in…

General Finance · Quantitative Finance 2022-03-24 I Martín-de-Santos