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Related papers: Cascading failures: dynamics, stability and contro…

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We analyze cascades of defaults in an interbank loan market. The novel feature of this study is that the network structure and the size distribution of banks are derived from empirical data. We find that the ability of a defaulted…

Statistical Finance · Quantitative Finance 2016-01-21 Fariba Karimi , Matthias Raddant

The modeling of cascading failure in power systems is difficult because of the many different mechanisms involved; no single model captures all of these mechanisms. Understanding the relative importance of these different mechanisms is an…

Physics and Society · Physics 2016-11-17 Jiajia Song , Eduardo Cotilla-Sanchez , Goodarz Ghanavati , Paul D. H. Hines

A characteristic property of networks is their ability to propagate influences, such as infectious diseases, behavioral changes, and failures. An especially important class of such contagious dynamics is that of cascading processes. These…

Physics and Society · Physics 2017-01-26 Adilson E. Motter , Yang Yang

Various social, financial, biological and technological systems can be modeled by interdependent networks. It has been assumed that in order to remain functional, nodes in one network must receive the support from nodes belonging to…

Physics and Society · Physics 2017-12-01 M. A. Di Muro , L. D. Valdez , H. H. A. Rêgo , S. V. Buldyrev , H. E. Stanley , L. A. Braunstein

The interconnectedness of financial institutions affects instability and credit crises. To quantify systemic risk we introduce here the PD model, a dynamic model that combines credit risk techniques with a contagion mechanism on the network…

Computational Finance · Quantitative Finance 2018-04-10 Daniele Petrone , Vito Latora

Control systems can show robustness to many events, like disturbances and model inaccuracies. It is natural to speculate that they are also robust to sporadic deadline misses when implemented as digital tasks on an embedded platform. This…

Optimization and Control · Mathematics 2022-08-31 Nils Vreman , Paolo Pazzaglia , Jie Wang , Victor Magron , Martina Maggio

We consider discrete-time dynamics, for cascading failure in DC networks, whose map is composition of failure rule with control actions. Supply-demand at the nodes is monotonically non-increasing under admissible control. Under the failure…

Systems and Control · Computer Science 2018-03-21 Qin Ba , Ketan Savla

We study the stability of receding horizon control for continuous-time non-linear stochastic differential equations. We illustrate the results with a simulation example in which we employ receding horizon control to design an investment…

Optimization and Control · Mathematics 2012-08-21 Fajin Wei , Andrea Lecchini-Visintini

In this paper, we study the interdependency between the power grid and the communication network used to control the grid. A communication node depends on the power grid in order to receive power for operation, and a power node depends on…

Optimization and Control · Mathematics 2014-05-13 Marzieh Parandehgheibi , Eytan Modiano , David Hay

We present an analytical model to study the role of expectation feedbacks and overlapping portfolios on systemic stability of financial systems. Building on [Corsi et al., 2016], we model a set of financial institutions having Value at Risk…

General Economics · Economics 2018-07-23 Piero Mazzarisi , Fabrizio Lillo , Stefano Marmi

Common asset holdings are widely believed to have been the primary vector of contagion in the recent financial crisis. We develop a network approach to the amplification of financial contagion due to the combination of overlapping…

General Finance · Quantitative Finance 2012-11-06 Fabio Caccioli , Munik Shrestha , Cristopher Moore , J. Doyne Farmer

This paper proposes a general framework for constructing feedback controllers that drive complex dynamical systems to "efficient" steady-state (or slowly varying) operating points. Efficiency is encoded using generalized equations which can…

We study networked control of non-linear systems where system states and tentative plant input sequences are transmitted over unreliable communication channels. The sequences are calculated recursively by using a pre-designed nominally…

Optimization and Control · Mathematics 2013-11-08 Daniel E. Quevedo , Isabel Jurado

We show that financial correlations exhibit a non-trivial dynamic behavior. We introduce a simple phenomenological model of a multi-asset financial market, which takes into account the impact of portfolio investment on price dynamics. This…

Physics and Society · Physics 2009-11-11 Giacomo Raffaelli , Matteo Marsili

We introduce a new class of (dynamical) systems that inherently capture cascading effects (viewed as consequential effects) and are naturally amenable to combinations. We develop an axiomatic general theory around those systems, and guide…

Discrete Mathematics · Computer Science 2019-03-14 Elie M. Adam , Munther A. Dahleh , Asuman Ozdaglar

Simulating potential cascading failures can be useful for avoiding or mitigating such events. Currently, existing steady-state analysis tools are ill-suited for simulating cascading outages as they do not model frequency dependencies, they…

Signal Processing · Electrical Eng. & Systems 2019-11-25 Amritanshu Pandey , Aayushya Agarwal , Marko Jereminov , Martin R. Wagner , David M. Bromberg , Larry Pileggi

In this expository and resources chapter we review selected aspects of the mathematics of dynamical systems, stability, and chaos, within a historical framework that draws together two threads of its early development: celestial mechanics…

Chaotic Dynamics · Physics 2016-11-09 R. Ball , P. Holmes

We construct a stochastic dynamical systems theory in which sustainability is a structural boundary property of a fully coupled Earth--Human--Production system. Each subsystem is modelled as a vector-valued process governed by stochastic…

Theoretical Economics · Economics 2026-03-02 Claudio Pirrone , Stefano Fricano , Gioacchino Fazio

We show that the steady-state variance as a performance measure for a class of networked linear control systems is expressible as the summation of a rational function over the Laplacian eigenvalues of the network graph. Moreover, we…

Systems and Control · Electrical Eng. & Systems 2019-08-06 Hossein K. Mousavi , Nader Motee

Integrated cyber-physical systems (CPSs), such as the smart grid, are increasingly becoming the underpinning technology for major industries. A major concern regarding such systems are the seemingly unexpected large-scale failures, which…

Physics and Society · Physics 2018-07-27 Yingrui Zhang , Osman Yagan