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An resilience optimal evaluation of financial portfolios implies having plausible hypotheses about the multiple interconnections between the macroeconomic variables and the risk parameters. In this paper, we propose a graphical model for…

Applications · Statistics 2020-01-31 Helder Rojas , David Dias

The lack of large-scale, continuously evolving empirical data usually limits the study of networks to the analysis of snapshots in time. This approach has been used for verification of network evolution mechanisms, such as preferential…

Physics and Society · Physics 2019-10-10 Lazaros K. Gallos , Shlomo Havlin , H. Eugene Stanley , Nina H. Fefferman

We consider a financial network represented at any time instance by a random liability graph which evolves over time. The agents connect through credit instruments borrowed from each other or through direct lending, and these create the…

Risk Management · Quantitative Finance 2022-12-23 Indrajit Saha , Veeraruna Kavitha

Many dynamical processes of complex systems can be understood as the dynamics of a group of nodes interacting on a given network structure. However, finding such interaction structure and node dynamics from time series of node behaviours is…

Physics and Society · Physics 2022-06-28 Yan Zhang , Yu Guo , Zhang Zhang , Mengyuan Chen , Shuo Wang , Jiang Zhang

Micro-structural models of contagion and systemic risk emphasize that shock propagation is inherently multi-channel, spanning counterparty exposures, short-term funding and roll-over risk, securities cross-holdings, and common-asset…

Statistical Finance · Quantitative Finance 2026-02-12 Ilias Aarab , Thomas Gottron , Andrea Colombo , Jörg Reddig , Annalauro Ianiro

Network science have constantly been in the focus of research for the last decade, with considerable advances in the controllability of their structural. However, much less effort has been devoted to study that how to improve the…

Systems and Control · Computer Science 2016-10-12 Jiuqiang Xu , Jinfa Wang , Hai Zhao , Siyuan Jia

In real-world and online social networks, individuals receive and transmit information in real time. Cascading information transmissions (e.g. phone calls, text messages, social media posts) may be understood as a realization of a diffusion…

Machine Learning · Computer Science 2017-07-11 Lin Chen , Forrest W Crawford , Amin Karbasi

Extensive research has focused on studying the robustness of interdependent non-directed networks and the design of mitigation strategies aimed at reducing disruptions caused by cascading failures. However, real systems such as power and…

Physics and Society · Physics 2025-01-15 Ignacio A. Perez , Cristian E. La Rocca

A social network is often divided into many factions. People are friends within each faction, while they are enemies of the other factions, and even my enemy's enemy is not necessarily my friend. This configuration can be described in terms…

Physics and Society · Physics 2025-09-18 Minwoo Bae , Takashi Shimada , Seung Ki Baek

Financial institutions obtain enormous amounts of data about user transactions and money transfers, which can be considered as a large graph dynamically changing in time. In this work, we focus on the task of predicting new interactions in…

Machine Learning · Statistics 2020-01-24 Valentina Shumovskaia , Kirill Fedyanin , Ivan Sukharev , Dmitry Berestnev , Maxim Panov

A probabilistic framework is introduced that represents stylized banking networks and aims to predict the size of contagion events. In contrast to previous work on random financial networks, which assumes independent connections between…

General Finance · Quantitative Finance 2011-10-20 Thomas R. Hurd , James P. Gleeson

Network structure can affect when and how widely new ideas, products, and behaviors are adopted. In widely-used models of biological contagion, interventions that randomly rewire edges (on average making them "longer") accelerate spread.…

Social and Information Networks · Computer Science 2023-08-22 Dean Eckles , Elchanan Mossel , M. Amin Rahimian , Subhabrata Sen

The rate at which nodes in evolving social networks acquire links (friends, citations) shows complex temporal dynamics. Preferential attachment and link copying models, while enabling elegant analysis, only capture rich-gets-richer effects,…

Social and Information Networks · Computer Science 2017-09-07 Mayank Singh , Rajdeep Sarkar , Pawan Goyal , Animesh Mukherjee , Soumen Chakrabarti

In the wake of the still ongoing global financial crisis, bank interdependencies have come into focus in trying to assess linkages among banks and systemic risk. To date, such analysis has largely been based on numerical data. By contrast,…

Computational Finance · Quantitative Finance 2015-07-28 Samuel Rönnqvist , Peter Sarlin

Research on the vulnerability of electric networks with a complex network approach has produced significant results in the last decade, especially for transmission networks. These studies have shown that there are causal relations between…

Physics and Society · Physics 2024-09-11 Bálint Hartmann , Tamás Soha , Michelle T. Cirunay , Tímea Erdei

Reciprocity, or the stochastic tendency for actors to form mutual relationships, is an essential characteristic of directed network data. Existing latent space approaches to modeling directed networks are severely limited by the assumption…

Methodology · Statistics 2024-11-28 Joshua Daniel Loyal , Xiangyu Wu , Jonathan R. Stewart

Much research has been done on studying the diffusion of ideas or technologies on social networks including the \textit{Influence Maximization} problem and many of its variations. Here, we investigate a type of inverse problem. Given a…

Social and Information Networks · Computer Science 2014-04-28 Georgios Askalidis , Randall A. Berry , Vijay G. Subramanian

The 2008 financial crisis illustrated the need for a thorough, functional understanding of systemic risk in strongly interconnected financial structures. Dynamic processes on complex networks being intrinsically difficult, most recent…

General Finance · Quantitative Finance 2015-08-05 Matteo Smerlak , Brady Stoll , Agam Gupta , James S. Magdanz

Complex network infrastructure systems for power-supply, communication, and transportation support our economical and social activities, however they are extremely vulnerable against the frequently increasing large disasters or attacks.…

Physics and Society · Physics 2022-04-05 Yukio Hayashi , Atsushi Tanaka , Jun Matsukubo

We study the international interbank market through a geometrical and a topological analysis of empirical data. The geometrical analysis of the time series of cross-country liabilities shows that the systematic information of the interbank…

Computational Finance · Quantitative Finance 2012-05-28 Alessandro Spelta , Tanya Araújo
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