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We explore the nonlinear dynamics of a macroeconomic model with resource constraints. The dynamics is derived from a production function that considers capital and a generalized form of energy as inputs. Energy, the new variable, is…

Theoretical Economics · Economics 2024-08-30 Frank Schweitzer , Giona Casiraghi

When banks choose similar investment strategies the financial system becomes vulnerable to common shocks. We model a simple financial system in which banks decide about their investment strategy based on a private belief about the state of…

Economics · Quantitative Finance 2014-08-05 Christoph Aymanns , Co-Pierre Georg

From critical infrastructure, to physiology and the human brain, complex systems rarely occur in isolation. Instead, the functioning of nodes in one system often promotes or suppresses the functioning of nodes in another. Despite advances…

Statistical Mechanics · Physics 2019-02-20 Michael M. Danziger , Ivan Bonamassa , Stefano Boccaletti , Shlomo Havlin

We introduce and solve a general model of dynamic response under external perturbations. This model captures a wide range of systems out of equilibrium including Ising models of physical systems, social opinions, and population genetics.…

Exactly Solvable and Integrable Systems · Physics 2007-11-19 David D. Chinellato , Marcus A. M. de Aguiar , Irving R. Epstein , Dan Braha , Yaneer Bar-Yam

The collective behavior of the ensembles of coupled nonlinear oscillator is one of the most interesting and important problems in modern nonlinear dynamics. In this paper, we study rotational dynamics, in particular space-time structures,…

Chaotic Dynamics · Physics 2020-11-03 V. O. Munyaev , D. S. Khorkin , M. I. Bolotov , L. A. Smirnov , G. V. Osipov

Aggregated phenomena in social sciences and economics are highly dependent on the way individuals interact. To help understanding the interplay between socio-economic activities and underlying social networks, this paper studies a…

Adaptation and Self-Organizing Systems · Physics 2007-05-23 David Chavalarias

We introduce and study a non-equilibrium continuous-time dynamical model of the price of a single asset traded by a population of heterogeneous interacting agents in the presence of uncertainty and regulatory constraints. The model takes…

Adaptation and Self-Organizing Systems · Physics 2009-04-23 V. I. Yukalov , D. Sornette , E. P. Yukalova

In this paper we investigate the endogenous information contained in four liquidity variables at a five minutes time scale on equity markets around the world: the traded volume, the bid-ask spread, the volatility and the volume at first…

Trading and Market Microstructure · Quantitative Finance 2018-11-12 Mikołaj Bińkowski , Charles-Albert Lehalle

Social media are transforming global communication and coordination. The data derived from social media can reveal patterns of human behavior at all levels and scales of society. Using geolocated Twitter data, we have quantified collective…

Physics and Society · Physics 2017-02-13 Alfredo J. Morales , Vaibhav Vavilala , Rosa M. Benito , Yaneer Bar-Yam

In this paper, we establish a few new synchronization conditions for complex networks with nonlinear and nonidentical self-dynamics with switching directed communication graphs. In light of the recent works on distributed sub-gradient…

Systems and Control · Computer Science 2015-10-19 Guodong Shi , Alexandre Proutiere , Karl Henrik Johansson

The sectoral synchronization observed for the Japanese business cycle in the Indices of Industrial Production data is an example of synchronization. The stability of this synchronization under a shock, e.g., fluctuation of supply or demand,…

Statistical Finance · Quantitative Finance 2011-11-01 Y. Ikeda , H. Aoyama , Y. Fujiwara , H. Iyetomi , K. Ogimoto , W. Souma , H. Yoshikawa

How, and to what extent, does an interconnected financial system endogenously amplify external shocks? This paper attempts to reconcile some apparently different views emerged after the 2008 crisis regarding the nature and the relevance of…

Risk Management · Quantitative Finance 2016-08-30 Gabriele Visentin , Stefano Battiston , Marco D'Errico

We develop an agent-based model of strategic link formation in Research and Development (R&D) networks. Empirical evidence has shown that the growth of these networks is driven by mechanisms which are both endogenous to the system (that is,…

Strong nonlinear effects combined with diffusive coupling may give rise to unpredictable evolution in spatially extended deterministic dynamical systems even in the presence of a fully negative spectrum of Lyapunov exponents. This regime,…

Chaotic Dynamics · Physics 2009-11-07 F. Ginelli , R. Livi , A. Politi

In this paper, I endeavour to construct a new model, by extending the classic exogenous economic growth model by including a measurement which tries to explain and quantify the size of technological innovation ( A ) endogenously. I do not…

Econometrics · Economics 2018-05-03 Murad Kasim

We model an economy-wide production network by cascading binary compounding functions, based on the sequential processing nature of the production activities. As we observe a hierarchy among the intermediate processes spanning the empirical…

Economics · Quantitative Finance 2023-04-06 Satoshi Nakano , Kazuhiko Nishimura

Proceeding from the concept of rational expectations, a new dynamic model of supply and demand in a single market with one supplier, one buyer, and one kind of commodity is developed. Unlike the cob-web dynamic theories with adaptive…

General Physics · Physics 2007-05-23 V. Granik , A. Granik

This paper investigates how economic shocks propagate and amplify through the input-output network connecting industrial sectors in developed economies. We study alternative models of diffusion on networks and we calibrate them using…

General Finance · Quantitative Finance 2014-04-02 Martha G. Alatriste Contreras , Giorgio Fagiolo

We develop an analytically tractable model featuring heterogeneous workers and firms, where labor markets clear through a one-to-many sorting mechanism. Firms determine both the number and composition of their employees, shaping (1) the…

Theoretical Economics · Economics 2026-03-11 Paweł Gola , Haozhou Tang

Threats on the stability of a financial system may severely affect the functioning of the entire economy, and thus considerable emphasis is placed on the analyzing the cause and effect of such threats. The financial crisis in the current…

Risk Management · Quantitative Finance 2014-10-28 Piotr Berman , Bhaskar DasGupta , Lakshmi Kaligounder , Marek Karpinski