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First passage models, where corporate assets undergo a random walk and default occurs if the assets fall below a threshold, provide an attractive framework for modeling the default process. Recently such models have been generalized to…

Condensed Matter · Physics 2007-05-23 Peter B. Lee , Mark B. Wise , Vineer Bhansali

This paper studies the consequences of capturing non-linear dependence among the covariates that drive the default of different obligors and the overall riskiness of their credit portfolio. Joint default modeling is, without loss of…

Risk Management · Quantitative Finance 2023-09-06 Margherita Doria , Elisa Luciano , Patrizia Semeraro

We study how idiosyncratic firm-level shocks generate aggregate volatility and tail risk when they propagate through a production network under overlapping adjustment: new productivity draws arrive before the economy reaches the static…

Theoretical Economics · Economics 2026-03-06 Antoine Mandel , Vipin P. Veetil

Contagion processes on networks, including disease spreading, information diffusion, or social behaviors propagation, can be modeled as simple contagion, i.e. involving one connection at a time, or as complex contagion, in which multiple…

Physics and Society · Physics 2023-06-19 Giulia Cencetti , Diego Andrés Contreras , Marco Mancastroppa , Alain Barrat

Social systems are characterized by the presence of group interactions and by the existence of both trust and distrust relations. Although there is a wide literature on signed social networks, where positive signs associated to the links…

Physics and Society · Physics 2023-05-09 Jean-François de Kemmeter , Luca Gallo , Fabrizio Boncoraglio , Vito Latora , Timoteo Carletti

We model the default contagion process in a large heterogeneous financial network under the interventions of a regulator (a central bank) with only partial information which is a more realistic setting than most current literature. We…

Risk Management · Quantitative Finance 2017-10-06 Yang Xu

We investigate critical behaviors of a social contagion model on weighted networks. An edge-weight compartmental approach is applied to analyze the weighted social contagion on strongly heterogenous networks with skewed degree and weight…

Physics and Society · Physics 2017-07-12 Yu-Xiao Zhu , Wei Wang , Ming Tang , Yong-Yeol Ahn

Behavioral adoptions are influenced by peers in different ways. While some individuals may change after a single incoming influence, others need multiple cumulated attempts. These two mechanism, known as the simple and the complex…

Physics and Society · Physics 2024-12-02 Elsa Andres , Romualdo Pastor-Satorras , Michele Starnini , Márton Karsai

From pathogens and computer viruses to genes and memes, contagion models have found widespread utility across the natural and social sciences. Despite their success and breadth of adoption, the approach and structure of these models remain…

The COVID-19 pandemic provides new motivation for a classic problem in epidemiology: estimating the empirical rate of transmission during an outbreak (formally, the time-varying reproduction number) from case counts. While standard methods…

Methodology · Statistics 2020-12-08 Bryan Wilder , Michael J. Mina , Milind Tambe

We study a self-consistent approach to introduce higher-order effects in a branching process model of complex contagion on clustered networks. Branching processes operate over an infinite population such that they never circle back and…

Physics and Society · Physics 2025-11-20 Leah A. Keating , Laurent Hébert-Dufresne

This paper develops a dynamic factor model in which common level and volatility factors evolve jointly, allowing conditional means and variances to interact endogenously within a large-information setting. The joint evolution of these…

Econometrics · Economics 2026-04-07 Haroon Mumtaz , Sofia Velasco

Diffusion processes in networks are increasingly used to model the spread of information and social influence. In several applications in computational sustainability such as the spread of wildlife, infectious diseases and traffic mobility…

Social and Information Networks · Computer Science 2013-09-27 Akshat Kumar , Daniel Sheldon , Biplav Srivastava

The effects of demographic stochasticity in the long term behaviour of endemic infectious diseases have been considered for long as a necessary addition to an underlying deterministic theory. The latter would explain the regular behaviour…

Populations and Evolution · Quantitative Biology 2007-08-29 M. Simões , M. M. Telo da Gama , A. Nunes

Understanding the process by which a contagion disseminates throughout a network is of great importance in many real world applications. The required sophistication of the inference approach depends on the type of information we want to…

Social and Information Networks · Computer Science 2017-05-26 Shohreh Shaghaghian , Mark Coates

Acute respiratory infections have epidemic and pandemic potential and thus are being studied worldwide, albeit in many different contexts and study formats. Predicting infection from symptom data is critical, though using symptom data from…

Machine Learning · Computer Science 2018-06-26 Nabeel Abdur Rehman , Maxwell Matthaios Aliapoulios , Disha Umarwani , Rumi Chunara

Understanding the spread of diseases through complex networks is of great interest where realistic, heterogeneous contact patterns play a crucial role in the spread. Most works have focused on mean-field behavior -- quantifying how contact…

Statistical Mechanics · Physics 2022-12-14 Elad Korngut , Jason Hindes , Michael Assaf

Understanding nonlinear social contagion dynamics on dynamical networks, such as opinion formation, is crucial for gaining new insights into consensus and polarization. Similar to threshold-dependent complex contagions, the nonlinearity in…

Physics and Society · Physics 2025-04-24 Xunlong Wang , Feng Fu , Bin Wu

The contagion threshold for diffusion of innovations is defined and calculated in finite graphs (two-dimensional regular lattices, regular random networks (RRNs), and two kinds of scale-free networks (SFNs)) with and without the bilingual…

Physics and Society · Physics 2019-12-11 Jeong-Ok Choi , Unjong Yu

A two-step contagion model with a single seed serves as a cornerstone for understanding the critical behaviors and underlying mechanism of discontinuous percolation transitions induced by cascade dynamics. When the contagion spreads from a…

Statistical Mechanics · Physics 2017-06-21 Wonjun Choi , Deokjae Lee , B. Kahng