Related Experiment Video
Updated: Feb 11, 2026
08:43
Application of Granger Causality Analysis of the Directed Functional Connection in Alzheimer's Disease and Mild Cognitive Impairment
Published on: August 7, 2017
8.5K
Modelling cointegration and Granger causality network to detect long-term equilibrium and diffusion paths in the
Xiangyun Gao1,2,3, Shupei Huang1,2,3, Xiaoqi Sun1,2
1School of Humanities and Economic Management, China University of Geosciences, Beijing 100083, People's Republic of China.
Royal Society Open Science
|April 17, 2018
Summary
This study introduces network analysis to explore financial systems from a microstructure viewpoint. It reveals how key stock influences spread and identifies industry risk diffusion paths for intervention.
Area of Science:
- Financial econometrics
- Complex network theory
- Systemic risk analysis
Background:
- Macroscopic financial phenomena are rooted in microscopic factors.
- Understanding systemic risk requires analyzing inter-industry relationships.
Purpose of the Study:
- To propose a network analysis paradigm for studying financial systems from a microstructure perspective.
- To identify risk diffusion paths within the real estate industry and its supply chain.
- To provide a method for curbing systemic risk through intervention.
Main Methods:
- Developed cointegration network and Granger causality network models.
- Utilized econometrics and complex network theory.
- Empirically analyzed stock price time series data for the real estate industry and related sectors.
Main Results:
- Identified steady long-term equilibrium relationships using the cointegration network.
- Revealed potential risk diffusion paths via the Granger causality network.
- Demonstrated that influence from a few key stocks can spread rapidly through the system.
Conclusions:
- Network analysis models effectively detect inter-industry diffusion paths and risk transmission.
- Identifying and intervening in transmission mediums can curb systemic risk diffusion.
- This approach enhances understanding of financial system interconnectedness and stability.
Related Concept Videos
03:48Behavior of Gas Molecules: Molecular Diffusion, Mean Free Path, and Effusion
31.4K
Although gaseous molecules travel at tremendous speeds (hundreds of meters per second), they collide with other gaseous molecules and travel in many different directions before reaching the desired target. At room temperature, a gaseous molecule will experience billions of collisions per second. The mean free path is the average distance a molecule travels between collisions. The mean free path increases with decreasing pressure; in general, the mean free path for a gaseous molecule will be...
31.4K
01:12Diffusion
221.8K
Diffusion is the passive movement of substances down their concentration gradients—requiring no expenditure of cellular energy. Substances, such as molecules or ions, diffuse from an area of high concentration to an area of low concentration in the cytosol or across membranes. Eventually, the concentration will even out, with the substance moving randomly but causing no net change in concentration. Such a state is called dynamic equilibrium, which is essential for maintaining overall...
221.8K
01:21Causality in Epidemiology
1.7K
Causality or causation is a fundamental concept in epidemiology, vital for understanding the relationships between various factors and health outcomes. Despite its importance, there's no single, universally accepted definition of causality within the discipline. Drawing from a systematic review, causality in epidemiology encompasses several definitions, including production, necessary and sufficient, sufficient-component, counterfactual, and probabilistic models. Each has its strengths and...
1.7K
02:05Calculating Equilibrium Concentrations
53.8K
Being able to calculate equilibrium concentrations is essential to many areas of science and technology—for example, in the formulation and dosing of pharmaceutical products. After a drug is ingested or injected, it is typically involved in several chemical equilibria that affect its ultimate concentration in the body system of interest. Knowledge of the quantitative aspects of these equilibria is required to compute a dosage amount that will solicit the desired therapeutic effect.
A more...
A more...
53.8K
01:22Mean free path and Mean free time
5.3K
Consider the gas molecules in a cylinder. They move in a random motion as they collide with each other and change speed and direction. The average of all the path lengths between collisions is known as the "mean free path."
5.3K
02:20Dynamic Equilibrium
63.4K
A reversible chemical reaction represents a chemical process that proceeds in both forward (left to right) and reverse (right to left) directions. When the rates of the forward and reverse reactions are equal, the concentrations of the reactant and product species remain constant over time and the system is at equilibrium. A special double arrow is used to emphasize the reversible nature of the reaction. The relative concentrations of reactants and products in equilibrium systems vary greatly;...
63.4K