Contagion in networks

Financial Networks and Contagion. SSRN Electronic Journal, Vol. 80. Bilateral Exposures and Systemic Solvency Risk. SSRN Electronic Journal, Vol. 348. Risk Propagation through Payment Distortion in Supply Chains. SSRN Electronic Journal, Vol. 108. Volume 64, Issue 2. February 2018. Pages v-x, 495-981.

Contagion in networks. 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 PubMed

We develop a theoretical framework for the study of epidemiclike social contagion in large scale social systems. We consider the most general setting in which different communication platforms or categories form multiplex networks. Specifically, we propose a contact-based information spreading model, and show that the critical point of the multiplex system associated with the active phase is ...

We estimated these contagion effects by combining daily global weather data, which creates exogenous variation in running among friends, with data on the network ties and daily exercise patterns ...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.By constructing trade–investment networks and modeling the contagion of systemic risk in trade and investment channels within different countries, we design three immune strategies, namely, Random Immune, Target Immune, and Neighbor Immune, and compare the inhibitory effect of these strategies on the shock contagion of multilayer networks.There are two types of contagion that have been studied on networks formed by financial links. The first type of contagion is caused by insolvencies and flows from …See Full PDFDownload PDF. Infectious Disease Modeling of Social Contagion in Networks Alison L. Hill1,2*, David G. Rand1,3, Martin A. Nowak1,4,5, Nicholas A. Christakis6,7,8 1 Program for Evolutionary Dynamics, Harvard University, Cambridge, Massachusetts, United States of America, 2 Biophysics Program and Harvard-MIT …

U.S. West Texas Intermediate crude futures for November delivery, which expired after settlement on Friday, fell 62 cents, or 0.7%, to $88.75 a barrel.In financial networks links stand for loan agreements between financial institutions which are represented by the nodes of the network. There are two types of contagion that have been studied on networks formed by financial links. The first type …Three types of computer networks are local area networks, metropolitan area networks and wide area networks. They are categorized by their size and the purpose they serve, which can be general or specific.The aim of this chapter is to provide an introduction to the literature on financial contagion in networks. We aim to do this by focusing on a limited number of papers in some formal …Introduction The aim of this chapter is to provide an introduction to the literature on financial contagion in networks. We aim to do this by focusing on a limited number of papers in some formal detail, trying to illustrate their analogies and differences as much as possible within a common framework. We divide the discussion in two parts.Fig. 1. Simplicial contagion model (SCM). The underlying structure of a social system is made of simplices, representing d-dimensional group interactions ( a ), organized in a simplicial complex ...Using a case study of a newly emerging CSA, the role of social contagion in network evolution will be assessed. The merit of this research stems from its central task of uncovering the dynamics manifest in the evolution of food networks. Network mapping will quantify the changes of food networks that have previously only been captured in a ...

In prior research, such propagation of behavior on social networks has been found to exhibit a transition from simple contagion—i.e, based on pairwise interactions—to a complex one—i.e ...We measure the emotional valence of content the users are exposed to before posting their own tweets. We determine that on average a negative post follows an over-exposure to 4.34% more negative ...By considering overlapping portfolios among financial institutions, we construct a financial contagion model for inter-bank networks with two channels of contagion: counter-party risk and common asset holdings risk. Based on the model, we verify the contribution of overlapping portfolios to systemic risk contagion and further analyse how the degree of diversification and initial shock affect ...Abstract. The vast majority of strategies aimed at controlling contagion processes on networks consider a timescale separation between the evolution of the …

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Abstract. This paper studies intertemporal asset pricing in network economies when distress shocks can propagate through the network, similarly to epidemic outbreaks. Two classes of equilibria exist. In the first, idiosyncratic shocks are diversifiable and do not affect valuations; the consumption capital asset pricing model applies.Simplicial contagion in temporal higher-order networks - IOPscience Journal of Physics: Complexity Paper • Open access Simplicial contagion in temporal higher-order networks Sandeep Chowdhary5,1, Aanjaneya Kumar2, Giulia Cencetti3, Iacopo Iacopini1,4 and Federico Battiston1 Published 26 July 2021 • © 2021 The Author (s).1. Introduction. Social networks are central to the understanding of human behaviors (Barsade, 2002, Hill et al., 2010a).Recent studies of social networks have been performed in various fields, including social psychology, computer science, and physics, and multi-disciplinary studies of social networks have demonstrated key influences that …Abstract. People increasingly turn to online social networks for information and debate. This means that the structures and properties of these networks, and the information they propagate, play ...In our model, we consider the coevolution of two spreading processes on a weighted multiplex network (see Fig. 2).The first is the process of social contagion spreading, S h IR, which is a SIR ...Contagion in Financial Networks by Paul Glasserman and H. Peyton Young. Published in volume 54, issue 3, pages 779-831 of Journal of Economic Literature, September 2016, Abstract: The recent financial crisis has prompted much new research on the interconnectedness of the modern financial system and...

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 ...Abstract. Monitoring and controlling financial contagion in banking systems is a challenging task, and micro-structural network contagion models are becoming fundamental policy tools for ...Open Access. Peer-reviewed. Research Article. Infectious Disease Modeling of Social Contagion in Networks. Alison L. Hill , David G. Rand, Martin A. Nowak, …The risk contagion research is carried out from three aspects:guarantee mechanism, partner selection mechanism, and production parameter. The research shows that: (1) Firm size distribution takes on a power-law tail. (2) Guarantee network provides a channel for risk contagion and aggravates risk contagion among firms.Contagion effects, also known as peer effects or social influence process, have become more and more central to social science, especially with the availability of longitudinal social network data. However, contagion effects are usually difficult to identify, as they are often entangled with other factors, such as homophily in the selection ...The study of informational contagion did not originally require the use of an explicit network, but the concept of a network is a natural framework for the study of informational contagion. Two of the earliest studies, Kodres and Pritzker (2002) [KP] and Pavlova and Rigobon (2008) [PR], illustrate the network structure that is implicit in the ... Contagion in Financial Networks* Paul Glasserman and H. Peyton Young . October 20, 2015 . Among the many factors contributing to the financial crisis the increasing of 2007-2009, interconnectedness of the global financial …ST. 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 …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 ...This paper proposes a model of network interactions in the interbank market. Our innovation is to model systemic risk in the interbank network as the propagation of incentives or strategic behavior rather than the propagation of losses after default. Transmission in our model is not based on default. Instead, we explain bank profitability …The study of informational contagion did not originally require the use of an explicit network, but the concept of a network is a natural framework for the study of informational contagion. Two of the earliest studies, Kodres and Pritzker (2002) [KP] and Pavlova and Rigobon (2008) [PR], illustrate the network structure that is implicit in the ...

Correlation-based networks models that combine financial networks with contagion models emerge from the dependence structure among market prices, and links can be related to Granger causality (Billio et al. 2012; Diebold and Yılmaz 2014) or to pairwise correlations between returns (Tumminello et al. 2010). Some other works have focused on ...

Business networking is a great way to get ahead professionally. Visit HowStuffWorks to learn all about business networking. Advertisement There's so much buzz about business networking that you might think that it's modern man's greatest in...The end of 3G is here and AT&T along with the other carriers will be shutting down their network this year to make room for 5G. The end of 3G is here and AT&T along with the other carriers will be shutting down their network this year to ma...exercises targeting linkages in the financial network other than interbank lending. This is a brief summary of the main results of the paper: Traditional indicators underestimate contagion risk. DR captures features of a bank systemic importance, such as …The discount rate and the rollover ratio play significant roles in determining the contagion effects. If the credit shock and liquidity shock coincide, the contagion effects will be amplified.,The results of this paper reveal the network structure of China's interbank market and the resilience of banking system to the adverse shock.Adventure sports clubs and networks let you share your passion for adventure. Visit HowStuffWorks to learn about adventure sports clubs and networks. Advertisement Adventure sports clubs and networks have become very popular in recent years...Similarly, the analysis of the contagion network on the trade front indicates a great transformation between the regions of the world, indicating consequently the advent of a large-scale shock that is COVID-19 and especially the containment policy that has had a significant effect on bilateral relations (see Fig. 2).The shutdown during the period of the …of contagion in networks and prove their theoretical properties. Our algorithms are easy to implement and help to quantify relationships previously inaccessible due to computational intractability. Using these algo-rithms, we study the spread of contagion in scale-free networks with 1,000 players using millions of Monte Carlo simulations.Abstract. The vast majority of strategies aimed at controlling contagion processes on networks consider a timescale separation between the evolution of the …Abstract. We study the formation of networks in environments where agents derive benefits from their neighbours (immediate links) but suffer losses through contagion when any agent on a path that connects them is hit by a shock. We first consider networks with undirected links (e.g. epidemics, underground resistance organizations, trade networks).

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We explore how the probability and potential impact of contagion is influenced by aggregate and idiosyncratic shocks, changes in network structure and asset market liquidity. Our findings suggest that financial systems exhibit a robust-yet-fragile tendency: while the probability of contagion may be low, the effects can be extremely widespread ...We present a model of worldwide crisis contagion based on the Google matrix analysis of the world trade network obtained from the UN Comtrade database. The fraction of bankrupted countries exhibits an on-off phase transition governed by a bankruptcy threshold κ related to the trade balance of the countries. For κ>κc, the contagion is …In prior research, such propagation of behavior on social networks has been found to exhibit a transition from simple contagion—i.e, based on pairwise interactions—to a complex one—i.e ...in the network theory literature, and then consider empirical studies that investigate the relationship between centrality measures and the inherent vulnerability of the network to contagion. We argue that thus far the empirical work has not produced a compelling link between traditional network measures and financial stability. Oil climbs on Mideast contagion fears from Israel-Gaza conflict. A person puts gas in a vehicle at a gas station in Manhattan, New York City, U.S., August 11, …The risk contagion effect is used to identify the relationship between the network structure and risk contagion. The existing studies do not explicitly consider the impact of network structure on risk contagion, but this issue has been highlighted by, among others, Li and Li, 2005, Ma et al., 2007 and Sun (2020).In 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.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. ….

The prime minister has warned the Israel-Hamas war risks unleashing a "contagion of conflict" across the Middle East. Rishi Sunak, who met with leaders in …The study of informational contagion did not originally require the use of an explicit network, but the concept of a network is a natural framework for the study of informational contagion. Two of the earliest studies, Kodres and Pritzker (2002) [KP] and Pavlova and Rigobon (2008) [PR], illustrate the network structure that is implicit in the ...This paper develops an analytical model of contagion in financial networks with arbitrary structure. We explore how the probability and potential impact of contagion is influenced by aggregate and idiosyncratic shocks, changes in network structure, and asset market liquidity. Our findings suggest that financial systems exhibit a robust-yet ...Feinstein Zachary & El-Masri Fatena, 2017. "The effects of leverage requirements and fire sales on financial contagion via asset liquidation strategies in financial networks," Statistics & Risk Modeling, De Gruyter, vol. 34(3-4), pages 113-139, September.Bardoscia, Marco & Barucca, Paolo & Brinley Codd, Adam & Hill, John, 2017. "The decline of solvency …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*Abstract. In this paper, we use the financial network contagion model of Gai P. and Kapadia S. [Contagion in financial networks, Proc. R. Soc. A466 (2010) 2401–2423] to investigatethe interaction of several types of heterogeneity found in real world banking systems. The first source of heterogeneity originates in the distribution of assets ...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.New contagion measures based on theories of copula, heavy-tailed distributions and networks are introduced. The measures are applied to study international stock markets contagion during the Global Financial Crisis 2008. Having declined post-crisis, the contagion risk remains above its pre-crisis level for both advanced and emerging economies.If you’re looking for a free WiFi network analyzer, there are several features that you should look for to ensure that you’re getting the best possible tool for your needs. One of the most important features to look for in a free WiFi netwo... Contagion in networks, In terms of Internet speed, most people agree that faster is always better. If you’re wondering what your network speed is, there are speed tests available on the Internet that enable you to test and measure the speed of your connection., Complex networks represent the natural backbone to study epidemic processes in populations of interacting individuals. Such a modeling framework, however, is naturally limited to pairwise interactions, making it less suitable to properly describe social contagion, where individuals acquire new norms or ideas after simultaneous exposure to multiple sources of infections., Abstract. People increasingly turn to online social networks for information and debate. This means that the structures and properties of these networks, and the information they propagate, play ..., The Adversary then allocates attack resources on nodes; if an attack succeeds then the Adversary decides on how successful resources should navigate the network. We obtain two principal results. One, we show that in a wide variety of circumstances a star network with all defence resources allocated to the central node is optimal for the Designer., Contagion theory is mixed. Results Naive contagion estimates. We estimated social contagion in the exercise behaviours of runners worldwide in a data set that precisely records the geographic locations, social network ties and daily running patterns of B1.1M individuals, who ran B359Mkm in a global social network of runners over 5 years., See Full PDFDownload PDF. Infectious Disease Modeling of Social Contagion in Networks Alison L. Hill1,2*, David G. Rand1,3, Martin A. Nowak1,4,5, Nicholas A. Christakis6,7,8 1 Program for Evolutionary Dynamics, Harvard University, Cambridge, Massachusetts, United States of America, 2 Biophysics Program and Harvard-MIT Division of Health ..., contagion in networks, homophily may also explain such evidence. Here we develop a dynamic matched sample estimation framework to distinguish influence and homophily effects in dynamic networks, and we apply this framework to a global instant messaging network of 27.4 million users, using data on the day-by-day adoption of a, 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 ..., Monitoring and controlling financial contagion in banking systems is a challenging task, and micro-structural network contagion models are becoming …, By investigating the dynamics of systemic risk contagion across networks, we extend the DebtRank model to a three-layer network. The empirical results suggest that the multilayer structure of the banking system has a non-linear superimposed effect on systemic losses, with interbank lending and holdings common asset being the main …, Using these algorithms, we study the spread of contagion in scale-free networks with 1,000 players using millions of Monte Carlo simulations. Our analysis provides quantitative and qualitative insight into the design of policies to control or spread contagion in networks. The scope of application is enlarged given the many other situations ..., We estimated these contagion effects by combining daily global weather data, which creates exogenous variation in running among friends, with data on the network ties and daily exercise patterns ..., Feinstein Zachary & El-Masri Fatena, 2017. "The effects of leverage requirements and fire sales on financial contagion via asset liquidation strategies in financial networks," Statistics & Risk Modeling, De Gruyter, vol. 34(3-4), pages 113-139, September.Bardoscia, Marco & Barucca, Paolo & Brinley Codd, Adam & Hill, John, 2017. "The decline of solvency …, Network contagion models are relevant policy tools to monitor systemic risk. We study how the presence of a community structure affects liquidity contagion. The presence of communities highly affects contagion in simulated banking systems. We also test the potential effects on contagion risk of several stylized policies., We present a model of worldwide crisis contagion based on the Google matrix analysis of the world trade network obtained from the UN Comtrade database. The fraction of bankrupted countries exhibits an on-off phase transition governed by a bankruptcy threshold κ related to the trade balance of the countries. For κ>κc, the contagion is …, Whether you’re cooking for a crowd or serving yourself, these Food Network recipes are the most popular around. Find your favorite and dig in. This easy and elegant recipe is aCC0mpanied by a flavorful Asian-inspired blend that doubles as a..., Many behavioral phenomena have been found to spread interpersonally through social networks, in a manner similar to infectious diseases. An important difference between social contagion and traditional infectious diseases, however, is that behavioral phenomena can be acquired by non-social mechanisms as well as through social transmission., Antonio Cabrales & Piero Gottardi & Fernando Vega-Redondo, 2017. " Risk Sharing and Contagion in Networks ," Review of Financial Studies, Society for Financial Studies, vol. 30 (9), pages 3086-3127. Handle: RePEc:oup:rfinst:v:30:y:2017:i:9:p:3086-3127. We investigate the socially optimal design of financial networks, that allows to tackle the ..., Proliferation of contagion in networks is an increasingly central problem with systemic consequences for society. For example, political divisiveness, anti-vaccination …, To this end, we suggest the possibility of designing an in-silico experiment in which homophily is arbitrarily tuned by artificially affecting the social network structure, for example by introducing an ad-hoc community structure [53–55], and contagion is thus analyzed in light of the controlled homophily mechanism., Complex networks represent the natural backbone to study epidemic processes in populations of interacting individuals. Such a modeling framework, however, is naturally limited to pairwise interactions, making it less suitable to properly describe social contagion, where individuals acquire new norms or ideas after simultaneous exposure to multiple sources of infections., As discussed in Section 2, contagion occurs through social interactions, and thus the process of contagion would use a social network as a substrate. In parallel, there could be an exploration process with reinforcement—akin to those introduced in Section 3—that takes place over a different network of relations/similarities between items., To study the transition from simple to complex contagion in the LFC, we consider networks of N + 1 = 240 agents. This is significantly smaller than for the LTM, but the ..., For example, Zhao et al. (2014) establish an emotion contagion model in complex networks and find that the tendency of emotion variation in the BA scale-free network is almost the same as that in ..., Using these algorithms, we study the spread of contagion in scale-free networks with 1,000 players using millions of Monte Carlo simulations. Our analysis provides quantitative and qualitative ..., The pandemic altered many aspects of jobs as well as careers. And the changes in networking closely mirror how workplace trends have evolved in recent years. "We're probably better than 50% back ..., Risk Sharing and Contagion in Networks | The Review of Financial Studies | Oxford Academic We investigate the socially optimal design of financial networks, that allows to tackle the trade-off between risk sharing and contagion. We identify conditions Skip to Main Content Advertisement Journals Books Search Menu Menu Navbar Search Filter, We present a model of worldwide crisis contagion based on the Google matrix analysis of the world trade network obtained from the UN Comtrade database. The fraction of bankrupted countries exhibits an on-off phase transition governed by a bankruptcy threshold κ related to the trade balance of the countries. For κ>κc, the contagion is …, We measure the emotional valence of content the users are exposed to before posting their own tweets. We determine that on average a negative post follows an over-exposure to 4.34% more negative ..., Abstract The importance of adequately modeling credit risk has once again been highlighted in the recent financial crisis. Defaults tend to cluster around times of economic stress due to poor macro-economic conditions, but also by directly triggering each other through contagion. Although credit default swaps have radically altered the dynamics of …, Simplicial contagion in temporal higher-order networks - IOPscience Journal of Physics: Complexity Paper • Open access Simplicial contagion in temporal higher-order networks Sandeep Chowdhary5,1, Aanjaneya Kumar2, Giulia Cencetti3, Iacopo Iacopini1,4 and Federico Battiston1 Published 26 July 2021 • © 2021 The Author (s)., We present a model of worldwide crisis contagion based on the Google matrix analysis of the world trade network obtained from the UN Comtrade database. The fraction of bankrupted countries exhibits an on-off phase transition governed by a bankruptcy threshold κ related to the trade balance of the countries. For κ>κc, the contagion is …, Financial Contagion in Core–Periphery Networks and Real Economy. Asako Chiba. Published 1 March 2020. Economics. Computational Economics. The recent global financial crisis has revealed that borrowing and lending among banks and other financial intermediaries makes it possible for a shock to a single bank to spread through the entire …