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Forecasting volcanic eruptions remains a formidable challenge due to the inherent complexity and variability of volcanic processes. A key source of uncertainty arises from the sporadic nature of volcanic unrest, which is often characterised…

Geophysics · Physics 2025-03-03 Qinghua Lei , Didier Sornette

Landslide movements typically show a series of progressively shorter quiescent phases, punctuated by sudden bursts during an acceleration crisis. We propose that such intermittent rupture phenomena can be described by a log-periodic power…

Geophysics · Physics 2025-02-18 Qinghua Lei , Didier Sornette

We present a detailed methodological study of the application of the modified profile likelihood method for the calibration of nonlinear financial models characterised by a large number of parameters. We apply the general approach to the…

Statistical Finance · Quantitative Finance 2016-02-29 Vladimir Filimonov , Guilherme Demos , Didier Sornette

Catastrophic failures have momentous impact in many scientific and technological fields but remain challenging to understand and predict. One key difficulty lies in the burstiness of rupture phenomena, which typically involve a series of…

Geophysics · Physics 2024-09-19 Qinghua Lei , Didier Sornette

We develop a discrete-event modeling framework that captures the progression of geophysical systems toward catastrophic failure through sequences of distinct damage events. By representing system evolution as a succession of temporally…

Geophysics · Physics 2025-07-31 Qinghua Lei , Didier Sornette

By combining (i) the economic theory of rational expectation bubbles, (ii) behavioral finance on imitation and herding of investors and traders and (iii) the mathematical and statistical physics of bifurcations and phase transitions, the…

General Finance · Quantitative Finance 2010-02-07 Wanfeng Yan , Ryan Woodard , Didier Sornette

An accurate understanding of the interplay between random and deterministic processes in generating extreme events is of critical importance in many fields, from forecasting extreme meteorological events to the catastrophic failure of…

Disordered Systems and Neural Networks · Physics 2016-04-07 Gergo Pal , Frank Raischel , Sabine Lennartz-Sassinek , Ferenc Kun , Ian G. Main

The Log-Periodic Power Law Singularity (LPPLS) model offers a general framework for capturing dynamics and predicting transition points in diverse natural and social systems. In this work, we present two calibration techniques for the LPPLS…

Computational Engineering, Finance, and Science · Computer Science 2024-05-22 Joshua Nielsen , Didier Sornette , Maziar Raissi

A number of papers claim that a Log Periodic Power Law (LPPL) fitted to financial market bubbles that precede large market falls or 'crashes', contain parameters that are confined within certain ranges. The mechanism that has been claimed…

Statistical Finance · Quantitative Finance 2020-07-27 David S. Bree , Nathan Lael Joseph

We present a self-consistent model for explosive financial bubbles, which combines a mean-reverting volatility process and a stochastic conditional return which reflects nonlinear positive feedbacks and continuous updates of the investors'…

Risk Management · Quantitative Finance 2014-08-26 L. Lin , Ren R. E , D. Sornette

We show that log-periodic power-law (LPPL) functions are intrinsically very hard to fit to time series. This comes from their sloppiness, the squared residuals depending very much on some combinations of parameters and very little on other…

Statistical Finance · Quantitative Finance 2010-06-14 David Brée , Damien Challet , Pier Paolo Peirano

We report new tests of the critical earthquake concepts performed on rockbursts in deep South African mines. We extend the concept of an optimal time and space correlation region and test it on the eight main shocks of our catalog provided…

Statistical Mechanics · Physics 2009-10-31 G. Ouillon , D. Sornette

We propose and implement a nonlinear Verification and Validation (V&V) methodology to test two fitting procedures for the log-periodic power law model (LPPL), a model that has diverse applications across data analysis, but known estimation…

Methodology · Statistics 2021-06-10 Jarret Petrillo

Forecasting the imminent catastrophic failure has a high importance for a large variety of systems from the collapse of engineering constructions, through the emergence of landslides and earthquakes, to volcanic eruptions. Failure forecast…

Disordered Systems and Neural Networks · Physics 2020-10-23 Viktória Kádár , Gergő Pál , Ferenc Kun

The recently proposed discrete scale invariance and its associated log-periodicity are an elaboration of the concept of scale invariance in which the system is scale invariant only under powers of specific values of the magnification…

Condensed Matter · Physics 2015-06-25 Y. Huang , A. Johansen , M. W. Lee , H. Saleur , D. Sornette

We investigate the approach to catastrophic failure in a model porous granular material undergoing uniaxial compression. A discrete element computational model is used to simulate both the micro-structure of the material and the complex…

Disordered Systems and Neural Networks · Physics 2014-02-27 F. Kun , I. Varga , S. Lennartz-Sassinek , I. G. Main

By combining (i) the economic theory of rational expectation bubbles, (ii) behavioral finance on imitation and herding of investors and traders and (iii) the mathematical and statistical physics of bifurcations and phase transitions, the…

Statistical Finance · Quantitative Finance 2010-07-08 Zhi-Qiang Jiang , Wei-Xing Zhou , Didier Sornette , Ryan Woodard , Ken Bastiaensen , Peter Cauwels

The log-periodic power law (LPPL) is a model of asset prices during endogenous bubbles. A major open issue is to verify the presence of LPPL in price sequences and to estimate the LPPL parameters. Estimation is complicated by the fact that…

Statistical Finance · Quantitative Finance 2011-02-01 Vincenzo Liberatore

Discrete scale invariance (DSI) has recently been documented in time-to-failure rupture, earthquake processes and financial crashes, in the fractal geometry of growth processes and in random systems. The main signature of DSI is the…

Statistical Mechanics · Physics 2009-10-30 Per Jögi , Didier Sornette , Michael Blank

In the context of statistical physics, critical phenomena are accompanied by power laws having a singularity at the critical point where a sudden change in the state of the system occurs. In this work, we show that lean blowout (LBO) in a…

Fluid Dynamics · Physics 2023-03-15 Ankan Banerjee , Induja Pavithran , R. I. Sujith
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