Related Experiment Video
Updated: Aug 28, 2025
05:37
An R-Based Landscape Validation of a Competing Risk Model
Published on: September 16, 2022
2.2K
Financial interbanking networks resilience under shocks propagation
Roy Cerqueti1,2,3, Matteo Cinelli4,5, Giovanna Ferraro6
1Department of Social and Economic Sciences, Sapienza University of Rome, P.le A. Moro, 5, 00185 Rome, Italy.
Annals of Operations Research
|September 19, 2022
Summary
This study introduces a new network resilience measure for financial systems, considering network topology and link weights during shock propagation. The findings offer insights into interbanking system stability and financial network analysis.
Area of Science:
- Network analysis
- Financial modeling
- System resilience
Background:
- Resilience, the capacity of a system to withstand shocks, is crucial in network analysis, particularly within finance.
- Understanding the resilience of financial interbanking systems is vital for economic stability.
Purpose of the Study:
- To introduce a novel network resilience measure that incorporates network topology and link weights.
- To model a financial interbanking system using empirical data.
- To compute and analyze the resilience of the financial network.
Main Methods:
- Development of a new network resilience metric accounting for topology and link weights.
- Construction of a financial network model based on quarterly interbanking data.
- Calibration of network model weights using high-quality empirical financial data.
- Computation and analysis of the proposed resilience measure on the financial network.
Main Results:
- The study successfully introduced and applied a new network resilience measure.
- The measure effectively considers the impact of network structure and link weights on shock propagation.
- Analysis provided insights into the resilience of the specific interbanking system studied.
Conclusions:
- The novel resilience measure offers a more comprehensive approach to assessing financial network stability.
- The findings contribute to both financial theory and network science by linking system structure to shock absorption capabilities.
- Further research can explore this measure in diverse financial network contexts.
Related Concept Videos
01:25Multimachine Stability
218
Multimachine stability analysis is crucial for understanding the dynamics and stability of power systems with multiple synchronous machines. The objective is to solve the swing equations for a network of M machines connected to an N-bus power system.
In analyzing the system, the nodal equations represent the relationship between bus voltages, machine voltages, and machine currents. The nodal equation is given by:
In analyzing the system, the nodal equations represent the relationship between bus voltages, machine voltages, and machine currents. The nodal equation is given by:
218
01:24Blood Pressure Imbalances and Circulatory Shock
971
Disorders affecting blood volume, vascular tone, or vascular function can disrupt vascular homeostasis, including conditions like hypertension, hemorrhage, and shock.
Blood Pressure: Hypertension and Hypotension
Normal blood pressure is 120/80 mm Hg. Elevated blood pressure is 120-129/under 80 mm Hg. Hypertension, warranting treatment at 130/80 mm Hg, is often asymptomatic and can lead to severe cardiovascular events, aneurysms, peripheral arterial disease, chronic renal disease, or cardiac...
Blood Pressure: Hypertension and Hypotension
Normal blood pressure is 120/80 mm Hg. Elevated blood pressure is 120-129/under 80 mm Hg. Hypertension, warranting treatment at 130/80 mm Hg, is often asymptomatic and can lead to severe cardiovascular events, aneurysms, peripheral arterial disease, chronic renal disease, or cardiac...
971
01:24BIBO stability of continuous and discrete -time systems
492
System stability is a fundamental concept in signal processing, often assessed using convolution. For a system to be considered bounded-input bounded-output (BIBO) stable, any bounded input signal must produce a bounded output signal. A bounded input signal is one where the modulus does not exceed a certain constant at any point in time.
To determine the BIBO stability, the convolution integral is utilized when a bounded continuous-time input is applied to a Linear Time-Invariant (LTI) system....
To determine the BIBO stability, the convolution integral is utilized when a bounded continuous-time input is applied to a Linear Time-Invariant (LTI) system....
492
01:23Relation Between the Distributed Load and Shear
750
Understanding the relationship between the distributed load and shear force in structural analysis is crucial for analyzing beams subjected to various loading conditions. Consider the case of a beam experiencing a distributed load, two concentrated loads, and a couple moment.
750
01:16Shock Waves
2.1K
While deriving the Doppler formula for the observed frequency of a sound wave, it is assumed that the speed of sound in the medium is greater than the source's speed through it. When this condition is breached, a shock wave occurs.
When the source's speed approaches the speed of sound, constructive interference between successive wavefronts emitted by the source occurs immediately behind it. Initially, scientists believed that this constructive interference would result in such high...
When the source's speed approaches the speed of sound, constructive interference between successive wavefronts emitted by the source occurs immediately behind it. Initially, scientists believed that this constructive interference would result in such high...
2.1K
00:59Propagation of Uncertainty from Random Error
962
An experiment often consists of more than a single step. In this case, measurements at each step give rise to uncertainty. Because the measurements occur in successive steps, the uncertainty in one step necessarily contributes to that in the subsequent step. As we perform statistical analysis on these types of experiments, we must learn to account for the propagation of uncertainty from one step to the next. The propagation of uncertainty depends on the type of arithmetic operation performed on...
962