Systemic 4 risk, here meant as the risk of default of a large portion of the financial system, depends on the network of financial exposures among institutions. However, there is no widely accepted methodology to determine the systemically important nodes in a network. To fill this gap, we introduce, DebtRank, a novel measure of systemic impact inspired by feedback-centrality. As an application, we analyse a new and unique dataset on the USD 1.2 trillion FED emergency loans program to global financial institutions during 2008–2010.
News related to FOC-Project.
We live in a computerized and networked society where many of our actions leave a digital trace and affect other people’s actions. This has lead to the emergence of a new data-driven research field: mathematical methods of computer science, statistical physics and sociometry provide insights on a wide range of disciplines ranging from social science to human mobility.
By analysing the diffusive dynamics of epidemics and of distress in complex networks, we study the effect of the assortativity on the robustness of the networks. We first determine by spectral analysis the thresholds above which epidemics/failures can spread; we then calculate the slowest diffusional times. Our results shows that disassortative networks exhibit a higher epidemiological threshold and are therefore easier to immunize, while in assortative networks there is a longer time for intervention before epidemic/failure spreads.
One of the main characteristics of real-world networks is their large clustering. Clustering is one aspect of a more general but much less studied structural organization of networks, i.e. edge multiplicity, defined as the number of triangles in which edges, rather than vertices, participate. Here we show that the multiplicity distribution of real networks is in many cases scale free, and in general very broad.
Classical economic theories prescribe specialization of countries industrial production. In- spection of the country databases of exported products shows that this is not the case: suc- cessful countries are extremely diversified, in analogy with biosystems evolving in a com- petitive dynamical environment. The challenge is assessing quantitatively the non-monetary competitive advantage of diversification which represents the hidden potential for develop- ment and growth.