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The study efforts to explore and extend the crisis predictability by synthetically reviewing and comparing a full mixture of early warning models into two constitutions: crisis identifications and predictive models. Given empirical results…

Mathematical Finance · Quantitative Finance 2020-10-21 Peiwan Wang , Lu Zong

Bank crisis is challenging to define but can be manifested through bank contagion. This study presents a comprehensive framework grounded in nonlinear time series analysis to identify potential early warning signals (EWS) for impending…

Risk Management · Quantitative Finance 2023-10-17 Shijia Song , Handong Li

Early warning systems (EWSs) are critical for forecasting and preventing economic and financial crises. EWSs are designed to provide early warning signs of financial troubles, allowing policymakers and market participants to intervene…

General Finance · Quantitative Finance 2023-10-03 Ali Namaki , Reza Eyvazloo , Shahin Ramtinnia

Financial markets of emerging economies are vulnerable to extreme and cascading information spillovers, surges, sudden stops and reversals. With this in mind, we develop a new online early warning system (EWS) to detect what is referred to…

Econometrics · Economics 2025-05-21 Artem Kraevskiy , Artem Prokhorov , Evgeniy Sokolovskiy

Early warning signals (EWSs) for complex dynamical systems aim to anticipate tipping points before they occur. While signals computed from time series data, such as temporal variance, are useful for this task, they are costly to obtain in…

Physics and Society · Physics 2025-05-13 Neil G. MacLaren , Kazuyuki Aihara , Naoki Masuda

In this topical review, we present a brief overview of the different methods and measures to detect the occurrence of critical transitions in complex systems. We start by introducing the mechanisms that trigger critical transitions, and how…

Physics and Society · Physics 2023-07-05 Sandip V. George , Sneha Kachhara , G. Ambika

Real-world complex systems such as the climate, ecosystems, stock markets, and combustion engines are prone to dynamical transitions from one state to another, with catastrophic consequences. State variables of such systems often exhibit…

Fluid Dynamics · Physics 2024-01-17 Ankan Banerjee , Induja Pavithran , R. I. Sujith

Real-life systems often experience regime shifts. An early warning signal (EWS) is a quantity that attempts to anticipate such a regime shift. Because complex systems of practical interest showing regime shifts are often dynamics on…

Physics and Society · Physics 2025-05-23 Shilong Yu , Neil G. MacLaren , Naoki Masuda

The growing instability of both global and domestic economic environments has increased the risk of financial distress at the household level. However, traditional econometric models often rely on delayed and aggregated data, limiting their…

Early Warning Signals (EWSs) are vital for implementing preventive measures before a disease turns into a pandemic. While new diseases exhibit unique behaviors, they often share fundamental characteristics from a dynamical systems…

Machine Learning · Computer Science 2025-01-15 Reza Miry , Amit K. Chakraborty , Russell Greiner , Mark A. Lewis , Hao Wang , Tianyu Guan , Pouria Ramazi

Smartphone-based earthquake early warning systems (EEWS) are emerging as a complementary solution to classic EEWS based on expensive scientific-grade instruments. Smartphone-based systems, however, are characterized by a highly dynamic…

Applications · Statistics 2022-10-28 Frank Yannick Massoda Tchoussi , Francesco Finazzi

Early warning signals (EWSs) forewarn a sudden transition (or tipping) from a desirable state to an undesirable state. However, we observe that EWSs detect an impending tipping past bifurcation points when control parameters are varied…

Chaotic Dynamics · Physics 2024-08-15 Rohit Radhakrishnan , Induja Pavithran , Valerie Livina , Jürgen Kurths , R. I. Sujith

Accurate volatility forecasting is essential in banking, investment, and risk management, because expectations about future market movements directly influence current decisions. This study proposes a hybrid modelling framework that…

Trading and Market Microstructure · Quantitative Finance 2025-12-16 Anna Perekhodko , Robert Ślepaczuk

Being able to forcast extreme volatility is a central issue in financial risk management. We present a large volatility predicting method based on the distribution of recurrence intervals between volatilities exceeding a certain threshold…

Statistical Finance · Quantitative Finance 2016-10-05 Zhi-Qiang Jiang , Askery A. Canabarro , Boris Podobnik , H. Eugene Stanley , Wei-Xing Zhou

Climate extremes present escalating risks to agriculture intensifying the need for reliable multi-hazard early warning systems (EWS). The situation is evolving due to climate change and hence such systems should have the intelligent to…

Machine Learning · Computer Science 2025-08-01 Boyuan Zheng , Victor W. Chu

The integration and innovation of finance and technology have gradually transformed the financial system into a complex one. Analyses of the causesd of abnormal fluctuations in the financial market to extract early warning indicators…

Risk Management · Quantitative Finance 2024-03-20 Shige Peng , Shuzhen Yang , Wenqing Zhang

Forecasting stock and cryptocurrency prices is challenging due to high volatility and non-stationarity, influenced by factors like economic changes and market sentiment. Previous research shows that Echo State Networks (ESNs) can…

Machine Learning · Computer Science 2025-08-08 Mansi Sharma , Enrico Sartor , Marc Cavazza , Helmut Prendinger

The development of robust Early Warning Signals (EWS) is necessary to quantify the risk of crossing tipping points in the present-day climate change. Classically, EWS are statistical measures based on time series of climate state variables,…

Atmospheric and Oceanic Physics · Physics 2025-03-25 Laure Moinat , Jérôme Kasparian , Maura Brunetti

Stock market forecasting has been a topic of extensive research, aiming to provide investors with optimal stock recommendations for higher returns. In recent years, this field has gained even more attention due to the widespread adoption of…

Computational Finance · Quantitative Finance 2024-12-17 Igor L. R. Azevedo , Toyotaro Suzumura

A broad range of natural and social systems from human microbiome to financial markets can go through critical transitions, where the system suddenly collapses to another stable configuration. Critical transitions can be unexpected, with…

Applications · Statistics 2022-05-17 Ville Laitinen , Leo Lahti
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