English
Related papers

Related papers: Dynamic Default Contagion in Heterogeneous Interba…

200 papers

We study the dynamical evolution toward steady state of the stochastic non-equilibrium model known as totally asymmetric simple exclusion process, in both uniform and non-uniform (staggered) one-dimensional systems with open boundaries.…

Statistical Mechanics · Physics 2016-07-13 R. B. Stinchcombe , S. L. A. de Queiroz

The latest financial crisis has painfully revealed the dangers arising from a globally interconnected financial system. Conventional approaches based on the notion of the existence of equilibrium and those which rely on statistical…

Trading and Market Microstructure · Quantitative Finance 2019-12-12 V. Sasidevan , Nils Bertschinger

Systemic financial risk refers to the simultaneous failure or destabilization of multiple financial institutions, often triggered by contagion mechanisms or common exposures to shocks. In this paper, we present a dynamical model of bank…

Dynamical Systems · Mathematics 2026-03-31 Marco Ioffredi , Stefano Marmi , Matteo Tanzi

We propose a cellular version of dynamical-mean field theory which gives a natural generalization of its original single-site construction and is formulated in different sets of variables. We show how non-orthogonality of the tight-binding…

Strongly Correlated Electrons · Physics 2009-10-31 Gabriel Kotliar , Sergej Y. Savrasov , Gunnar Palsson

The bidomain system of degenerate reaction-diffusion equations is a well-established spatial model of electrical activity in cardiac tissue, with "reaction" linked to the cellular action potential and "diffusion" representing current flow…

Analysis of PDEs · Mathematics 2018-03-26 Mostafa Bendahmane , Kenneth H. Karlsen

In this paper, we first propose a diffusive pathogen infection model with general incidence rate which incorporates cell-to-cell transmission. By applying the theory of monotone dynamical systems, we prove that the model admits the global…

Analysis of PDEs · Mathematics 2026-02-24 Shohel Ahmed

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

We derive a simple sufficient condition for the local asymptotic stability of spatially discrete, continuous-time reaction-diffusion systems of networked dynamical systems at a homogeneous equilibrium point. The framework explicitly…

Dynamical Systems · Mathematics 2026-05-07 Dinesh Kumar

Although real-world complex systems typically interact through sparse and heterogeneous networks, analytic solutions of their dynamics are limited to models with all-to-all interactions. Here, we solve the dynamics of a broad range of…

Disordered Systems and Neural Networks · Physics 2025-01-28 Fernando L. Metz

Banks and financial institutions all over the world manage portfolios containing tens of thousands of customers. Not all customers are high credit-worthy, and many possess varying degrees of risk to the Bank or financial institutions that…

Applications · Statistics 2021-09-17 Dominic Joseph

In this paper, we propose a two-sector Markovian infectious model, which is an extension of Greenwood's model. The central idea of this model is that the causality of defaults of two sectors is in both direction, which enrich dependence…

Risk Management · Quantitative Finance 2013-01-03 Jia-Wen Gu , Wai-Ki Ching , Tak-Kuen Siu , Harry Zheng

We consider a dynamical model of distress propagation on complex networks, which we apply to the study of financial contagion in networks of banks connected to each other by direct exposures. The model that we consider is an extension of…

Risk Management · Quantitative Finance 2016-10-05 Marco Bardoscia , Fabio Caccioli , Juan Ignacio Perotti , Gianna Vivaldo , Guido Caldarelli

We study insolvency cascades in an interbank system when banks are allowed to insure their loans with credit default swaps (CDS) sold by other banks. We show that, by properly shifting financial exposures from one institution to another, a…

Risk Management · Quantitative Finance 2017-10-16 Matt V. Leduc , Sebastian Poledna , Stefan Thurner

We propose a dynamic model of dependence structure between financial institutions within a financial system and we construct measures for dependence and financial instability. Employing Markov structures of joint credit migrations, our…

Mathematical Finance · Quantitative Finance 2018-09-11 Yu-Sin Chang

In the context of epidemic spreading, many intricate dynamical patterns can emerge due to the cooperation of different types of pathogens or the interaction between the disease spread and other failure propagation mechanism. To unravel such…

Physics and Society · Physics 2024-05-07 Bo Li , David Saad

Much research in systemic risk is focused on default contagion. While this demands an understanding of valuation, fewer articles specifically deal with the existence, the uniqueness, and the computation of equilibrium prices in structural…

Computational Finance · Quantitative Finance 2015-01-30 Johannes Hain , Tom Fischer

Mean field approximation is a powerful technique to study the performance of large stochastic systems represented as $n$ interacting objects. Applications include load balancing models, epidemic spreading, cache replacement policies, or…

Performance · Computer Science 2021-11-03 Sebastian Allmeier , Nicolas Gast

This thesis investigates critical phenomena and equilibrium states in various stochastic models through three interconnected studies. In the first chapter, we analyze the Activated Random Walk model on a one-dimensional ring in the…

Probability · Mathematics 2024-12-24 Célio Terra

We investigate the effects of cooperativity between contagion processes that spread and persist in a host population. We propose and analyze a dynamical model in which individuals that are affected by one transmissible agent $A$ exhibit a…

Physics and Society · Physics 2017-11-22 Li Chen , Fakhteh Ghanbarnejad , Dirk Brockmann

The global financial crisis in 2007-2009 demonstrated that systemic risk can spread all over the world through a complex web of financial linkages, yet we still lack fundamental knowledge about the evolution of the financial web. In…

Statistical Finance · Quantitative Finance 2018-06-11 Teruyoshi Kobayashi , Taro Takaguchi