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In this article the problem of reconstructing the pattern of connection between agents from partial empirical data in a macro-economic model is addressed, given a set of behavioral equations. This systemic point of view puts the focus on…

General Economics · Economics 2019-01-30 Aurélien Hazan

Network reconstruction is the first step towards understanding, diagnosing and controlling the dynamics of complex networked systems. It allows us to infer properties of the interaction matrix, which characterizes how nodes in a system…

Systems and Control · Computer Science 2016-01-12 Marco Tulio Angulo , Jaime A. Moreno , Albert-László Barabási , Yang-Yu Liu

Management of systemic risk in financial markets is traditionally associated with setting (higher) capital requirements for market participants. There are indications that while equity ratios have been increased massively since the…

Computational Finance · Quantitative Finance 2019-05-16 Christian Diem , Anton Pichler , Stefan Thurner

This research establishes that many real-world networks exhibit bounded expansion, a strong notion of structural sparsity, and demonstrates that it can be leveraged to design efficient algorithms for network analysis. We analyze several…

Social and Information Networks · Computer Science 2018-10-15 Erik D. Demaine , Felix Reidl , Peter Rossmanith , Fernando Sanchez Villaamil , Somnath Sikdar , Blair D. Sullivan

Propagation of balance-sheet or cash-flow insolvency across financial institutions may be modeled as a cascade process on a network representing their mutual exposures. We derive rigorous asymptotic results for the magnitude of contagion in…

Risk Management · Quantitative Finance 2014-03-26 Hamed Amini , Rama Cont , Andreea Minca

The aim of this paper is to quantify and manage systemic risk caused by default contagion in the interbank market. We model the market as a random directed network, where the vertices represent financial institutions and the weighted edges…

Risk Management · Quantitative Finance 2021-01-18 Nils Detering , Thilo Meyer-Brandis , Konstantinos Panagiotou , Daniel Ritter

In this paper we extend our previous results on the connectivity functions and pressure of the Random Cluster Model in the highly subcritical phase and in the highly supercritical phase, originally proved only on the cubic lattice $\Z^d$,…

Mathematical Physics · Physics 2008-02-08 Aldo Procacci , Benedetto Scoppola

A networked system can be made resilient against adversaries and attacks if the underlying network graph is structurally robust. For instance, to achieve distributed consensus in the presence of adversaries, the underlying network graph…

Systems and Control · Electrical Eng. & Systems 2019-07-26 Faiq Ghawash , Waseem Abbas

Different network structures are compiared with respect to degree of robustnes of identification statistical procedures. It is shown that threshold (market) graph, cliques and independent sets in the threshold (market) graphs are preferable…

Statistics Theory · Mathematics 2018-01-31 L. P. Semenov , V. A. Kalyagin , P. A. Koldanov , M. V. Batsyn , S. V. Golovanova , M. A. Voronina

We study the formation of an optimal interbank network in a model where banks control both their supply of liquidity, through cash reserves, and their exposures to other banks' risky projects. The value of each bank's project may suddenly…

Mathematical Finance · Quantitative Finance 2024-10-08 Daniel E. Rigobon , Ronnie Sircar

In the past two decades, significant advances have been made in understanding the structural and functional properties of biological networks, via graph-theoretic analysis. In general, most graph-theoretic studies are conducted in the…

Physics and Society · Physics 2013-10-21 Michelle Rudolph-Lilith , Lyle E. Muller

We propose a minimal model of the secured interbank network able to shed light on recent money markets puzzles. We find that excess liquidity emerges due to the interactions between the reserves and liquidity ratio constraints; the…

General Economics · Economics 2024-10-25 Victor Le Coz , Michael Benzaquen , Damien Challet

We introduce an evolving network model in which a new node attaches to a randomly selected target node and also to each of its neighbors with probability $p$. The resulting network is sparse for $p<\frac{1}{2}$ and dense (average degree…

Physics and Society · Physics 2016-11-23 R. Lambiotte , P. L. Krapivsky , U. Bhat , S. Redner

Subgraph densities play a crucial role in network analysis, especially for the identification and interpretation of meaningful substructures in complex graphs. Localized subgraph densities, in particular, can provide valuable insights into…

Social and Information Networks · Computer Science 2025-05-23 Connor Mattes , Esha Datta , Ali Pinar

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

A major problem in the study of complex socioeconomic systems is represented by privacy issues$-$that can put severe limitations on the amount of accessible information, forcing to build models on the basis of incomplete knowledge. In this…

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

Heterogeneous porous materials play a crucial role in various engineering systems. Microstructure characterization and reconstruction provide effective means for modeling these materials, which are critical for conducting physical property…

Computational Physics · Physics 2025-11-19 Zhenchuan Ma , Qizhi Teng , Pengcheng Yan , Lindong Li , Kirill M. Gerke , Marina V. Karsanina , Xiaohai He

The structure of the supply chain network has important implications for modelling economic systems, from growth trajectories to responses to shocks or natural disasters. However, reconstructing firm-to-firm networks from available…

Physics and Society · Physics 2024-12-23 Leonardo Niccolò Ialongo , Sylvain Bangma , Fabian Jansen , Diego Garlaschelli

In increasingly many settings, data sets consist of multiple samples from a population of networks, with vertices aligned across these networks. For example, brain connectivity networks in neuroscience consist of measures of interaction…

Statistics Theory · Mathematics 2021-05-11 Keith Levin , Asad Lodhia , Elizaveta Levina