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In normal times, it is assumed that financial institutions operating in non-overlapping sectors have complementary and distinct outcomes, typically reflected in mostly uncorrelated outcomes and asset returns. Such is the reasoning behind…

综合经济学 · 经济学 2021-01-19 Sayuj Choudhari , Richard Licheng Zhu

Establishing a resilient food trade system is an international consensus on safeguarding food security amid growing disruptions. However, a unified resilience framework has yet to be established, leading to the proliferation of diverse…

物理与社会 · 物理学 2025-09-26 Si-Yao Wei , Wei-Xing Zhou

Throughout history, many countries have repeatedly experienced large swings in asset prices, which are usually accompanied by large fluctuations in macroeconomic activity. One of the characteristics of the period before major economic…

理论经济学 · 经济学 2024-08-12 Tomohiro Hirano

Financial crises are a recurrent phenomenon with important effects on the real economy. The financial system is inherently fragile and it is therefore of great importance to be able to measure and characterize its systemic stability.…

统计理论 · 数学 2011-12-08 Helena Ferreira , Marta Ferreira

The insufficient understanding of the credit network structure was recognized as a key factor for regulators' underestimation of the destructive systematic risk during the financial crisis that started in 2007. The existing credit network…

风险管理 · 定量金融 2018-12-05 Xuan Lu , Li Huang , Kangjuan Lyu

This paper investigates the endogenous formation of supply chains and its consequences for disruption propagation. In production networks where upstream risk is highly correlated and supplier relationships are not observable, the marginal…

理论经济学 · 经济学 2024-05-24 Andrea Titton

We show how bad and good volatility propagate through forex markets, i.e., we provide evidence for asymmetric volatility connectedness on forex markets. Using high-frequency, intra-day data of the most actively traded currencies over 2007 -…

综合金融 · 定量金融 2016-07-28 Jozef Barunik , Evzen Kocenda , Lukas Vacha

Systemic liquidity risk, defined by the IMF as "the risk of simultaneous liquidity difficulties at multiple financial institutions", is a key topic in macroprudential policy and financial stress analysis. Specialized models to simulate…

风险管理 · 定量金融 2021-12-08 V. Macchiati , G. Brandi , G. Cimini , G. Caldarelli , D. Paolotti , T. Di Matteo

We use methods from network science to analyze corruption risk in a large administrative dataset of over 4 million public procurement contracts from European Union member states covering the years 2008-2016. By mapping procurement markets…

综合金融 · 定量金融 2019-09-20 Johannes Wachs , Mihály Fazekas , János Kertész

International trade has been increasingly organized in the form of global value chains (GVCs) where different stages of production are located in different countries. This recent phenomenon has substantial consequences for both trade policy…

物理与社会 · 物理学 2019-02-20 Zhen Zhu , Greg Morrison , Michelangelo Puliga , Alessandro Chessa , Massimo Riccaboni

Socio-technical systems, where technological and human elements interact in a goal-oriented manner, provide important functional support to our societies. Here we draw attention to the underappreciated concept of timeliness -- i.e., system…

物理与社会 · 物理学 2025-02-27 José Moran , Frank P. Pijpers , Utz Weitzel , Jean-Philippe Bouchaud , Debabrata Panja

In complex systems like financial market, risk tolerance of individuals is crucial for system resilience.The single-security price limit, designed as risk tolerance to protect investors by avoiding sharp price fluctuation, is blamed for…

综合金融 · 定量金融 2019-08-21 Shan Lu , Jichang Zhao , Huiwen Wang

This paper investigates how economic shocks propagate and amplify through the input-output network connecting industrial sectors in developed economies. We study alternative models of diffusion on networks and we calibrate them using…

综合金融 · 定量金融 2014-04-02 Martha G. Alatriste Contreras , Giorgio Fagiolo

We provide an overview of the relationship between financial networks and systemic risk. We present a taxonomy of different types of systemic risk, differentiating between direct externalities between financial organizations (e.g.,…

风险管理 · 定量金融 2020-12-24 Matthew O. Jackson , Agathe Pernoud

The economical world consists of a highly interconnected and interdependent network of firms. Here we develop temporal and structural network tools to analyze the state of the economy. Our analysis indicates that a strong clustering can be…

The interconnectedness of financial institutions affects instability and credit crises. To quantify systemic risk we introduce here the PD model, a dynamic model that combines credit risk techniques with a contagion mechanism on the network…

计算金融 · 定量金融 2018-04-10 Daniele Petrone , Vito Latora

Risks threatening modern societies form an intricately interconnected network that often underlies crisis situations. Yet, little is known about how risk materializations in distinct domains influence each other. Here we present an approach…

计算机与社会 · 计算机科学 2016-05-03 Boleslaw K. Szymanski , Xin Lin , Andrea Asztalos , Sameet Sreenivasan

The relationship between price volatilty and a market extremum is examined using a fundamental economics model of supply and demand. By examining randomness through a microeconomic setting, we obtain the implications of randomness in the…

数理金融 · 定量金融 2018-07-31 Carey Caginalp , Gunduz Caginalp

Modern macroeconomic theories were unable to foresee the last Great Recession and could neither predict its prolonged duration nor the recovery rate. They are based on supply-demand equilibria that do not exist during recessionary shocks.…

综合经济学 · 经济学 2019-06-19 Peter Klimek , Sebastian Poledna , Stefan Thurner

Management of systemic risk in financial markets is traditionally associated with setting (higher) capital requirements for market participants. There are indications that while equity ratios have been increased massively since the…

计算金融 · 定量金融 2019-05-16 Christian Diem , Anton Pichler , Stefan Thurner