Related papers: Dynamic Debt Swapping in Financial Networks
We consider a decentralized convex unconstrained optimization problem, where the cost function can be decomposed into a sum of strongly convex and smooth functions, associated with individual agents, interacting over a static or…
The ability of a peer-to-peer (P2P) system to effectively host decentralized applications often relies on the availability of a peer-sampling service, which provides each participant with a random sample of other peers. Despite the…
We study data exchange among strategic agents without monetary transfers, motivated by domains such as research consortia and healthcare collaborations where payments are infeasible or restricted. The central challenge is to reap the…
Neural networks offer high-accuracy solutions to a range of problems, but are costly to run in production systems because of computational and memory requirements during a forward pass. Given a trained network, we propose a techique called…
Dynamic networks are graphs in which edges are available only at specific time instants, modeling connections that change over time. The dynamic network creation game studies this setting as a strategic interaction where each vertex…
Safe and economic operation of networked systems is often challenging. Optimization-based schemes are frequently considered, since they achieve near-optimality while ensuring safety via the explicit consideration of constraints. In…
We develop a novel stress-test framework to monitor systemic risk in financial systems. The modular structure of the framework allows to accommodate for a variety of shock scenarios, methods to estimate interbank exposures and mechanisms of…
This work studies how to preemptively increase the resilience of a network by means of time-varying topological actuation. To do this, we focus on linear dynamical systems that are compatible with a given network, and consider policies that…
A problem of optimal debt management is modeled as a noncooperative game between a borrower and a pool of lenders, in infinite time horizon with exponential discount. The yearly income of the borrower is governed by a stochastic process.…
A central challenge in financial economics is understanding how credit networks form under informational noise. We introduce the concept of topological capital, arguing that banks increasingly rely on topological certification, interpreting…
Network backbones provide useful sparse representations of weighted networks by keeping only their most important links, permitting a range of computational speedups and simplifying network visualizations. A key limitation of existing…
We consider a sharing economy network where agents embedded in a graph share their resources. This is a fundamental model that abstracts numerous emerging applications of collaborative consumption systems. The agents generate a random…
Designing well-connected graphs is a fundamental problem that frequently arises in various contexts across science and engineering. The weighted number of spanning trees, as a connectivity measure, emerges in numerous problems and plays a…
We embrace a fresh perspective to auditing by analyzing a large set of companies as complex financial networks rather than static aggregates of balance sheet data. Preliminary analyses show that network centrality measures within these…
The VertexCover problem is proven to be computationally hard in different ways: It is NP-complete to find an optimal solution and even NP-hard to find an approximation with reasonable factors. In contrast, recent experiments suggest that on…
We study spatial networks that are designed to distribute or collect a commodity, such as gas pipelines or train tracks. We focus on the cost of a network, as represented by the total length of all its edges, and its efficiency in terms of…
We study contagion and systemic risk in sparse financial networks with balance-sheet interactions on a directed random graph. Each institution has homogeneous liabilities and equity, and exposures along outgoing edges are split equally…
The notion of a credit spread curve is fundamental in fixed income investing, but in practice it is not `given' and needs to be constructed from bond prices either for a particular issuer, or for a sector rating-by-rating. Rather than…
Understanding how credit flows through inter-firm networks is critical for assessing financial stability and systemic risk. In this study, we introduce DebtStreamness, a novel metric inspired by trophic levels in ecological food webs, to…
Back-propagation has been the workhorse of recent successes of deep learning but it relies on infinitesimal effects (partial derivatives) in order to perform credit assignment. This could become a serious issue as one considers deeper and…