Did you know?

Table 1. Four different models and corresponding algorithms describe influence or information spreading in social networks. Alg-cc and Sim-sc, indicated by the green colour, are basic models for describing complex contagion and simple contagion processes, respectively. Alg-cc is based on an analytical mathematical expression.Network connections diversify firms' risk exposures , but they also create channels through which shocks can spread by contagion. We review the extensive literature on this issue , with the focus ... Glasserman and Young: Contagion in Financial Networks 781 including such concepts as assets, liabilities, leverage, and net worth. We then considerSection 3 describes our network model of contagion. Section 4 presents and discusses the computer experiments and simulation results. Finally, Section 5 concludes the paper. 2. Related literature. Our study is related to separate strands of the literature on interbank networks. First, it relates to the literature on contagion channels.We further demonstrate how Bayesian network theory can be applied to detect contagion channels within the financial network, to measure the systemic importance of selected entities on others, and ...Complex contagion, where “network effects,” appear to play a significant role in the contagion process, may to a large extent be due to the combined factors of visibility and direct social ...Social networks have changed the way how people communicate with each other dramatically. The study on information dissemination in social networks has attracted considerable attention. Many evidences show that emotionsof netizens are likely to spread with information and the emotional contagion also affect information dissemination in social networks. In this paper, we propose a cognitive ...networks.5 The dynamics of conflict and contagion on the CP-star yield extremal outcomes: either (almost) all nodes survive and remain connected or all nodes are captured. Consider next a network with two equally defended hub nodes and an equal number of periphery nodes linked to either hub.Distinguishing influence-based contagion from homophily-driven diffusion in dynamic networks. Proceedings of the National Academy of Sciences , 106 (51) , 21544 – 21549 . CrossRef Google Scholar PubMedIn this context, two questions arise: how resilient financial networks are to contagion, and how financial institutions form connections when exposed to the risk of contagion.Social contagion involves behaviour, emotions, or conditions spreading spontaneously through a group or network. The phenomenon has been discussed by social scientists since the late 19th century, although much work on the subject was based on unclear or even contradictory conceptions of what social contagion is, so exact definitions vary.tion is how network structure interacts with other potential sources of contagion. In the run-up to the crisis, leverage levels increased and capital buffers at some banks were extremely thin. Large financial institutions had increased their reliance on short-term Contagion in Financial Networks † Paul Glasserman and H. Peyton Young*However, appropriate models for studies of contagion in community networks remain elusive. Numerous studies indicate the effects of geodetic properties such as the degrees of separation, distributions, mixing and cover times, diameters of networks or degrees of separation, and centrality and clustering of social interactions, and these have ...There are many options for watching network TV online. It’s a great option for if you’re out of the house and still want to catch up on your favorite shows, or perhaps you prefer to stream TV on your phone. Whatever the case, check out thes...Here we extend simplicial contagion to time-varying networks, where pairwise and higher-order simplices can be created or destroyed over time. By following a microscopic Markov chain approach, we ...We develop a model for contagion risks and optimal security investment in a directed network of interconnected agents with heterogeneous degrees, loss functions, and security profiles. Our model generalizes several contagion models in the literature, particularly the independent cascade model and the linear threshold model. We state …Two algorithms for computing the contagion threshold are presented. • Contagion thresholds of connected sets of nodes in a tree are completely determined. • Bounds for contagion thresholds of nodes in a general network are established. • Having more than six friends may make you more contagious than your locally dominating friend. •Thus, with bankruptcy costs, the probability of contagion is at least ( 1 - ( 57 / 150)) q = 0.62 q, which is now greater than the probability of direct defaults through independent shocks. A similar comparison holds with truncated exponentially distributed shocks. This example illustrates how bankruptcy costs increase the probability of contagion.Our work on social networks and human behavior thus covers several domains and relies on diverse data and approaches. It builds on prior research on ‘peer effects’ and interpersonal influence by examining data in which individuals are embedded in networks much larger than two people. We summarize this work and describe critiques, …Luitgard A. M. Veraart. We develop a new model for solvency contagion that can be used to quantify systemic risk in stress tests of financial networks. In contrast to many existing models, it ...Using these algorithms, we study the spread of contagion in sWe develop a theoretical framework for th Downloadable! We study the formation of networks in environments where agents derive benefits from other agents directly linked to them but suffer losses through contagion when any agent on a path connected to them is hit by a shock. We first consider networks with undirected links (e.g. epidemics, underground resistance organizations, trade networks) where we find that stable … 2.4 Asset Price. This section describes how the price of each non-fi tion is how network structure interacts with other potential sources of contagion. In the run-up to the crisis, leverage levels increased and capital buffers at some banks were extremely thin. Large financial institutions had increased their reliance on short-term Contagion in Financial Networks † Paul Glasserman and H. Peyton Young* Contagion: In economics and finance, a contag

(b) Case 2: Contagion analysis using the aggregate network: missing the source of a financial shock. Figure 1: Limitations of current network analysis approaches. aggregated networks, encompassing information about time-varying topologies and reconstruct-ing how financial contagion unfolds across sectors, countries and time. Therefore, our analysisST. LOUIS (AP) — The estimated future cost to clean up 19 sites contaminated by nuclear waste from the Cold War era has risen by nearly $1 billion in …This contribution focuses on the methodology applied in papers that investigate the dynamics of contagion in financial networks using numerical simulations. In these papers, a propagation of losses and defaults in a financial system is modeled as a direct balance-sheet contagion (a.k.a. counterparty contagion), that is the direct …On the one hand, it drives banks to form a network that minimizes contagion. On the other hand, it concentrates the risk of fire sale at the core of big banks. Interestingly, network thus formed under imperfect information may partially resolve network uncertainty. This is because equilibrium in our model is a self-fulfilling phenomenon.

Abstract. In this paper, we investigate contagion risk in an endogenous financial network, which is characterized by credit relationships connecting downstream and upstream firms, interbank credit ...Studying contagion risk in financial networks is very important for the stability of financial systems. But most models of financial networks often suffer from their very own problems. Many financial network models do not include interbank networks or inter-firm networks [8], [11], [13], [29], [33]. The study of Delli Gatti et al. [12] includes ...…

Reader Q&A - also see RECOMMENDED ARTICLES & FAQs. At that time, an individual’s sentiment contagion syste. Possible cause: Using a case study of a newly emerging CSA, the role of social contagion in n.