Related papers: Clearing Sections of Lattice Liability Networks
A lattice-theoretic framework is introduced that permits the study of the conditional independence (CI) implication problem relative to the class of discrete probability measures. Semi-lattices are associated with CI statements and a…
A lattice-theoretic framework is introduced that permits the study of the conditional independence (CI) implication problem relative to the class of discrete probability measures. Semi-lattices are associated with CI statements and a…
In this paper, we construct a decentralized clearing mechanism which endogenously and automatically provides a claims resolution procedure. This mechanism can be used to clear a network of obligations through blockchain. In particular, we…
Trade networks, across which countries distribute their products, are crucial components of the globalized world economy. Their structure is strongly heterogeneous across products, given the different features of the countries which buy and…
Brain-computer interfaces surged extraordinary developments in recent years, and a significant discrepancy now exists between the abundance of available data and the limited headway made in achieving a unified theoretical framework. This…
Lattice-linearity was introduced as a way to model problems using predicates that induce a lattice among the global states (Garg, SPAA 2020). A key property of \textit{the predicate} representing such problems is that it induces…
Network visualization is essential for many scientific, societal, technological and artistic domains. The primary goal is to highlight patterns out of nodes interconnected by edges that are easy to understand, facilitate communication and…
In this work we propose a multi-valued extension of logic programs under the stable models semantics where each true atom in a model is associated with a set of justifications, in a similar spirit than a set of proof trees. The main…
The aim of this paper is to propose a theoretical construct, smart network field theory, for the characterization, monitoring, and control of smart network systems. Smart network systems are intelligent autonomously-operating networks, a…
Threats on the stability of a financial system may severely affect the functioning of the entire economy, and thus considerable emphasis is placed on the analyzing the cause and effect of such threats. The financial crisis in the current…
Multilayer networks have become increasingly ubiquitous across diverse scientific fields, ranging from social sciences and biology to economics and international relations. Despite their broad applications, the inferential theory for…
A simple banking network model is proposed which features multiple waves of bank defaults and is analytically solvable in the limiting case of an infinitely large homogeneous network. The model is a collection of nodes representing…
Cascading failures represent a fundamental threat to the integrity of complex systems, often precipitating a comprehensive collapse across diverse infrastructures and financial networks. This research articulates a robust and pragmatic…
This paper provides a framework for modeling the financial system with multiple illiquid assets during a crisis. This work generalizes the paper by Amini, Filipovic and Minca (2016) by allowing for differing liquidation strategies. The main…
Networks have in recent years emerged as an invaluable tool for describing and quantifying complex systems in many branches of science. Recent studies suggest that networks often exhibit hierarchical organization, where vertices divide into…
The forecasting of the credit default risk has been an important research field for several decades. Traditionally, logistic regression has been widely recognized as a solution due to its accuracy and interpretability. As a recent trend,…
The 2008 financial crisis has been attributed to "excessive complexity" of the financial system due to financial innovation. We employ computational complexity theory to make this notion precise. Specifically, we consider the problem of…
Basic principles of statistical inference are commonly violated in network data analysis. Under the current approach, it is often impossible to identify a model that accommodates known empirical behaviors, possesses crucial inferential…
This paper studies the problem of optimally allocating a cash injection into a financial system in distress. Given a one-period borrower-lender network in which all debts are due at the same time and have the same seniority, we address the…
We contribute to the understanding of how systemic risk arises in a network of credit-interlinked agents. Motivated by empirical studies we formulate a network model which, despite its simplicity, depicts the nature of interbank markets…