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This paper introduces a methodology for identifying and simulating financial and economic systems using stochastically structured reservoir computers (SSRCs). The framework combines structure-preserving embeddings with graph-informed…

Optimization and Control · Mathematics 2025-11-20 Lendy Banegas , Fredy Vides

Probabilistic programs are a powerful and convenient approach to formalise distributions over system executions. A classical verification problem for probabilistic programs is temporal inference: to compute the likelihood that the execution…

Logic in Computer Science · Computer Science 2025-02-21 Kazuki Watanabe , Sebastian Junges , Jurriaan Rot , Ichiro Hasuo

Planning under uncertainty is a central problem in the study of automated sequential decision making, and has been addressed by researchers in many different fields, including AI planning, decision analysis, operations research, control…

Artificial Intelligence · Computer Science 2011-05-30 C. Boutilier , T. Dean , S. Hanks

This paper describes a general approach for stochastic modeling of assets returns and liability cash-flows of a typical pensions insurer. On the asset side, we model the investment returns on equities and various classes of fixed-income…

Risk Management · Quantitative Finance 2020-05-27 Sergio Alvares Maffra , John Armstrong , Teemu Pennanen

Economies and societal structures in general are complex stochastic systems which may not lend themselves well to algebraic analysis. An addition of subjective value criteria to the mechanics of interacting agents will further complicate…

General Finance · Quantitative Finance 2018-12-07 Dmitriy Volinskiy , Lana Cuthbertson , Omid Ardakanian

Stochastic processes offer a flexible mathematical formalism to model and reason about systems. Most analysis tools, however, start from the premises that models are fully specified, so that any parameters controlling the system's dynamics…

Systems and Control · Computer Science 2017-01-11 Luca Bortolussi , Guido Sanguinetti

A probabilistic framework is proposed for the optimization of efficient switched control strategies for physical systems dominated by stochastic excitation. In this framework, the equation for the state trajectory is replaced with an…

Systems and Control · Computer Science 2017-01-10 Gianluca Meneghello , Paolo Luchini , Thomas Bewley

Factor models characterize the joint behavior of large sets of financial assets through a smaller number of underlying drivers. We develop a network-based framework in which factors emerge naturally from the structure of interactions among…

Computational Finance · Quantitative Finance 2026-04-15 Jose Negrete , Jaime Joel Ramos

We explore a stochastic model that enables capturing external influences in two specific ways. The model allows for the expression of uncertainty in the parametrisation of the stochastic dynamics and incorporates patterns to account for…

Pricing of Securities · Quantitative Finance 2024-04-11 Felix L. Wolf , Griselda Deelstra , Lech A. Grzelak

Distributed architectures have become ubiquitous in many complex technical and socio-technical systems because of their role in improving uncertainty management, accommodating multiple stakeholders, and increasing scalability and…

Distributed, Parallel, and Cluster Computing · Computer Science 2016-08-03 Mohsen Mosleh , Kia Dalili , Babak Heydari

We study financial systems from a game-theoretic standpoint. A financial system is represented by a network, where nodes correspond to firms, and directed labeled edges correspond to debt contracts between them. The existence of cycles in…

Computer Science and Game Theory · Computer Science 2021-07-23 Panagiotis Kanellopoulos , Maria Kyropoulou , Hao Zhou

Managing stock efficiently remains a core issue in modern logistics, where companies must reconcile cost efficiency with dependable service despite unpredictable market conditions. Conventional models often overlook the direct connection…

Optimization and Control · Mathematics 2026-04-14 Tianxiao Sun , Noah Schwarzkopf

Computation is commonly defined as the execution of abstract algorithms over symbolic representations, with physical systems treated as substrates that realise predefined operations. While effective for engineered machines, this separation…

Physics and Society · Physics 2026-01-21 Kimia Witte

In performative stochastic optimization, decisions can influence the distribution of random parameters, rendering the data-generating process itself decision-dependent. In practice, decision-makers rarely have access to the true…

Optimization and Control · Mathematics 2025-10-27 Zhuangzhuang Jia , Yijie Wang , Roy Dong , Grani A. Hanasusanto

The requirement for identifying accurate system representations has not only been a challenge to fulfill, but it has compromised the scalability of formal methods, as the resulting models are often too complex for effective decision making…

Systems and Control · Electrical Eng. & Systems 2025-10-20 Oliver Schön , Sofie Haesaert , Sadegh Soudjani

The recent financial crisis has sharply revealed that current understanding of the global financial system is more than limited. In the recovery plan the confidence in the underlying theory is crucial. To address the problem we propose the…

Adaptation and Self-Organizing Systems · Physics 2010-09-27 Galina Korotkikh , Victor Korotkikh

Engineered infrastructure systems pose inverse problems in which hidden states, unknown parameters, and subsystem couplings must be inferred from sparse and noisy measurements. These problems are difficult because physical subsystems are…

Systems and Control · Electrical Eng. & Systems 2026-05-28 Esmaeil Ghorbani , Jürgen Hackl

Deploying applications across the computing continuum requires selecting infrastructure nodes from geographically distributed and heterogeneous environments while satisfying constraints (e.g., performance, location). This decision problem…

Understanding the functional architecture of complex systems is crucial to illuminate their inner workings and enable effective methods for their prediction and control. Recent advances have introduced tools to characterise emergent…

Adaptation and Self-Organizing Systems · Physics 2024-06-06 Fernando E. Rosas , Bernhard C. Geiger , Andrea I Luppi , Anil K. Seth , Daniel Polani , Michael Gastpar , Pedro A. M. Mediano

Stochastic network calculus is a newly developed theory for stochastic service guarantee analysis of computer networks. In the current stochastic network calculus literature, its fundamental models are based on the cumulative amount of…

Performance · Computer Science 2011-12-14 Jing Xie , Yuming Jiang , Min Xie
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