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The 2008 financial crisis illustrated the need for a thorough, functional understanding of systemic risk in strongly interconnected financial structures. Dynamic processes on complex networks being intrinsically difficult, most recent…

General Finance · Quantitative Finance 2015-08-05 Matteo Smerlak , Brady Stoll , Agam Gupta , James S. Magdanz

Network reconstruction consists in retrieving the hidden interaction structure of a system from observations. Many reconstruction algorithms have been proposed, although less research has been devoted to describe their theoretical…

Network architecture design is very important for the optimization of industrial networks. The type of network architecture can be divided into small-scale network and large-scale network according to its scale. Graph theory is an efficient…

Social and Information Networks · Computer Science 2022-09-20 Chao Dong , Xiaoxiong Xiong , Qiulin Xue , Zhengzhen Zhang , Kai Niu , Ping Zhang

A probabilistic framework is introduced that represents stylized banking networks and aims to predict the size of contagion events. In contrast to previous work on random financial networks, which assumes independent connections between…

General Finance · Quantitative Finance 2011-10-20 Thomas R. Hurd , James P. Gleeson

Credit and liquidity risks represent main channels of financial contagion for interbank lending markets. On one hand, banks face potential losses whenever their counterparties are under distress and thus unable to fulfill their obligations.…

Risk Management · Quantitative Finance 2016-09-23 Giulio Cimini , Matteo Serri

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…

Risk Management · Quantitative Finance 2019-12-11 Nils Detering , Thilo Meyer-Brandis , Konstantinos Panagiotou , Daniel Ritter

Stochastic network models play a central role across a wide range of scientific disciplines, and questions of statistical inference arise naturally in this context. In this paper we investigate goodness-of-fit and two-sample testing…

Statistics Theory · Mathematics 2026-03-27 Subhro Ghosh , Rathindra Nath Karmakar , Samriddha Lahiry

The role of Network Theory in the study of the financial crisis has been widely spotted in the latest years. It has been shown how the network topology and the dynamics running on top of it can trigger the outbreak of large systemic crisis.…

General Finance · Quantitative Finance 2016-05-09 Andrea Flori , Giuseppe Pappalardo , Michelangelo Puliga , Alessandro Chessa , Fabio Pammolli

The power of networks manifests itself in a highly non-linear amplification of a number of effects, and their weakness - in propagation of cascading failures. The potential systemic risk effects can be either exacerbated or mitigated,…

Distributed, Parallel, and Cluster Computing · Computer Science 2013-03-26 Dmitry Zinoviev , Hamid Benbrahim , Greta Meszoely , Dan Stefanescu

We study how network structure affects the dynamics of collateral in presence of rehypothecation. We build a simple model wherein banks interact via chains of repo contracts and use their proprietary collateral or re-use the collateral…

Risk Management · Quantitative Finance 2018-02-07 Duc Thi Luu , Mauro Napoletano , Paolo Barucca , Stefano Battiston

A systematic assessment of global neural network connectivity through direct electrophysiological assays has remained technically unfeasible even in dissociated neuronal cultures. We introduce an improved algorithmic approach based on…

Neurons and Cognition · Quantitative Biology 2015-06-03 Olav Stetter , Demian Battaglia , Jordi Soriano , Theo Geisel

Reconstructing complex networks from measurable data is a fundamental problem for understanding and controlling collective dynamics of complex networked systems. However, a significant challenge arises when we attempt to decode structural…

Physics and Society · Physics 2015-11-20 Xiao Han , Zhesi Shen , Wen-Xu Wang , Zengru Di

Interbank lending and borrowing occur when financial institutions seek to settle and refinance their mutual positions over time and circumstances. This interactive process involves money creation at the aggregate level. Coordination…

General Finance · Quantitative Finance 2021-09-27 Yuri Biondi , Feng Zhou

Reversible crosslinking is a design paradigm for polymeric materials, wherein they are microscopically reinforced with chemical species that form transient crosslinks between the polymer chains. Besides the potential for self-healing,…

Soft Condensed Matter · Physics 2019-04-29 Nicholas B. Tito , Costantino Creton , Cornelis Storm , Wouter G. Ellenbroek

Network structure provides critical information for understanding the dynamic behavior of networks. However, the complete structure of real-world networks is often unavailable, thus it is crucially important to develop approaches to infer a…

Social and Information Networks · Computer Science 2023-01-11 Jin-Zhu Yu , Mincheng Wu , Gisela Bichler , Felipe Aros-Vera , Jianxi Gao

We present a bipartite network model that captures intermediate stages of optimization by blending the Maximum Entropy approach with Optimal Transport. In this framework, the network's constraints define the total mass each node can supply…

Statistical Mechanics · Physics 2026-02-05 Lorenzo Buffa , Dario Mazzilli , Riccardo Piombo , Fabio Saracco , Giulio Cimini , Aurelio Patelli

A modern version of Monetary Circuit Theory with a particular emphasis on stochastic underpinning mechanisms is developed. It is explained how money is created by the banking system as a whole and by individual banks. The role of central…

Economics · Quantitative Finance 2015-10-27 Alexander Lipton

Cities create potential for individuals from different backgrounds to interact with one another. It is often the case, however, that urban infrastructure obfuscates this potential, creating dense pockets of affluence and poverty throughout…

Physics and Society · Physics 2023-04-21 Nandini Iyer , Ronaldo Menezes , Hugo Barbosa

Bipartite networks provide an insightful representation of many systems, ranging from mutualistic networks of species interactions to investment networks in finance. The analysis of their topological structures has revealed the ubiquitous…

Physics and Society · Physics 2018-07-20 Mika J. Straka , Guido Caldarelli , Tiziano Squartini , Fabio Saracco

Standard macroeconomic frameworks have correctly identified Japan's government debt - now exceeding 240% of GDP - as carrying substantial fiscal risk. Yet FRED data from 2013 to 2026 present an empirical record inviting a complementary…

Econometrics · Economics 2026-04-21 Hirofumi Wakimoto
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