Contagion in networks

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...

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.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 ...Abstract. This contribution studies the effects of credit contagion on the credit risk of a portfolio of bank loans. To this aim we introduce a model that takes into account the counterparty risk in a network of interdependent firms that describes the presence of business relations among different firms. The location of the firms is simulated ...Financial networks and the contagion of bank failures ha ve been widely studied beginning with. the seminal work on financial payment networks by Eisenberg & Noe [14]. The 2007-2009.The purpose of this study is to examine network learning through the application of contagion theories. The transmission of knowledge, sharing of resources, and facilitation of learning through contagion has interested both business-to-business and economic geography researchers. This study responds to calls in both research traditions for ...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...Happiness and other emotions spread between people in direct contact, but it is unclear whether massive online social networks also contribute to this spread. Here, we elaborate a novel method for measuring the contagion of emotional expression. With data from millions of Facebook users, we show that rainfall directly influences the emotional content of …Define contagion. contagion synonyms, contagion pronunciation, contagion translation, English dictionary definition of contagion. n. 1. a. Disease transmission by direct or indirect contact. b. A disease that is or may be transmitted by direct or indirect contact; a contagious disease....

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 ...Here, we propose an alternative method for detecting emotional contagion in massive social networks that is based on instrumental variables regression, a technique pioneered in economics [23]. In an experiment we would directly control each user's emotional expression to see what impact it has on their friends' emotional expression.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 ...Risk-sharing and contagion in networks Antonio Cabrales University College London Piero Gottardi European University Institute Fernando Vega-Redondo Universit a Bocconi April 9, 2014 Abstract We investigate the trade-o between the risk-sharing gains enjoyed by more intercon-nected rms and the costs resulting from an increased risk exposure.Complex contagions that require more than two contacts to "infected" sources can be described with threshold rules. In the following description of such general contagion dynamics, the components of a network are regarded as either active or inactive and change their state according to three fundamental processes: (i) an active node becomes spontaneously inactive in a time interval ...Dec 28, 2015 · 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...

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 ...Oct 9, 2013 · Section 3.1 illustrates how the resilience measure allows us to quantify and predict the outcome of contagion on one sample network generated from a random network model that mimics the properties of a real interbank exposure network analyzed in Cont et al. . We observe that networks with the same average connectivity may amplify initial shocks ... Another approach is based on contagion through common asset holdings and includes the work of Allen et al. (2012) and Caccioli et al. (2012). There is also a large literature on simulation models of contagion in interbank networks; for a recent survey, see Summer (2013). Our approach differs from earlier work by providing explicit expressions ...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 ...

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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 ...The risk contagion of the stock market is more from the downside of fundamentals and the low expectations of investors. In the high-frequency connectedness network structure, Saudi Arabia and France have the highest TO connectedness and NET connectedness, indicating that they are the senders of short-term risk contagion due to emergencies.Therefore, in the dynamic risk contagion model of inter-firm credit guarantee network constructed, the contagion of assets losses and bankruptcy risk between firms are more serious in this study. More importantly, it can reflect the actual situation of risk contagion between firms through credit guarantee network. 3.Financial networks and the contagion of bank failures ha ve been widely studied beginning with. the seminal work on financial payment networks by Eisenberg & Noe [14]. The 2007-2009.

Explosive contagion in SIS epidemics. The evolution of the spreading process depends both on transmission rates and dynamical rules imposed. For concreteness, we start the analysis by employing the exponential synergistic transmission rates (2) for contagion dynamics given by the rules of the SIS epidemic model applied to …Jul 30, 2014 · Our article contributes to this literature by developing a general framework for the study of optimal network design and defence in a setting with strategic conflict and contagion dynamics. The analysis of this framework yields results on optimality of CP-star and multi-hub networks that are new. 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 ...“This book is an attempt to crystallize the early results of research that focusses on the basic modelling structure of financial systemic risk in a financial network. … The book will be useful for those working and researching in the areas of systemic risk, financial networks and risk management.” (Anatoliy Swishchuk, zbMATH 1369.91005 ...Sentiment contagion such as the spread of panic in emergencies is a common phenomenon in human society. Considering the difference between sentiment contagion and epidemic contagion, we define the transition probabilities of the binary emotional state (optimism, pessimism) and establish a sentiment contagion model. Transition equations are ...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.Miritello et al. (2011) use an approach that combines an explicit SIR disease model and a dynamic network to produce a static network that describes the spread of contagion in that network. Their method gives an estimate of the expected outbreak size, as well as the epidemic threshold on that network.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.Contagion: In economics and finance, a contagion can be explained as a situation where a shock in a particular economy or region spreads out and affects others by way of, say, price movements. Description: The contagion effect explains the possibility of spread of economic crisis or boom across countries or regions. This phenomenon may occur ...According to social contagion theory [29, 30], a person's attitudes and behavior can be contagious to others in their social networks [31]. Thus, people tend to adapt their actions to the behavior ...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 propagation of financial contagion in networks with dense clustering which reflects high concentration or localization of exposures between few participants will be identified as one that is TITF.

The inherent difficulty of distinguishing true causal contagion from confounding network homophily has been noted in detail elsewhere (see, for example, refs. 23,24). However, large observational ...The development of chickenpox can be traced to 17th century Europe. Along with a number of other contagions, it migrated to the Western Hemisphere in what has been called the Columbian Exchange.(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 analysisWe propose copula-based contagion measures that capture the non-linearity in a network setting and account for dependence structure of the whole network. We highlight the extensive cross-sectional coverage of countries in this paper as we use data for 60 countries’ stock market indices (30 advanced and 30 emerging economies).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 in online social networks (OSN) occurs when users are exposed to information disseminated by other users. Studies of contagion are largely devoted to the spread of viral information and to local neighbor-to-neighbor contagion. However, many contagion events can be non-viral in the sense of being unpopular with low reach size, or global in the sense of being exposed to non-adjacent ...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.

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The first threshold of contagion of a network N, τ 1 (N), is the magnitude of the smallest shock that is large enough to cause secondary defaults. Correspondingly, the final threshold of contagion of a network, τ 2 (N), is the value of the smallest shock that is capable of inducing the failure of all nodes in the network. 4.1.1. Complete networks“This book is an attempt to crystallize the early results of research that focusses on the basic modelling structure of financial systemic risk in a financial network. … The book will be useful for those working and researching in the areas of systemic risk, financial networks and risk management.” (Anatoliy Swishchuk, zbMATH 1369.91005 ...Define contagion. contagion synonyms, contagion pronunciation, contagion translation, English dictionary definition of contagion. n. 1. a. Disease transmission by direct or indirect contact. b. A disease that is or may be transmitted by direct or indirect contact; a contagious disease....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.Learn More . Network security creates shielded, monitored, and secure communications between users and assets. Despite the rapid evolution of what constitutes the users, assets, and connections ...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. •Risk-sharing and contagion in networks Antonio Cabrales University College London Piero Gottardi European University Institute Fernando Vega-Redondo Universit a Bocconi April 9, 2014 Abstract We investigate the trade-o between the risk-sharing gains enjoyed by more intercon-nected rms and the costs resulting from an increased risk exposure.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. •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...Therefore, risk contagion in the network may be suppressed by internal or external strategies. 2.2. Financial risk contagion in complex networks. Complex network theory provides a new method for studying risk contagion among multiple subjects (Chao et al., 2022). Allen and Gale (2000) analyzed risk contagion in a network composed of … ….

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 …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 …Network security is the combination of policies and procedures implemented by a network administrator to avoid and keep track of unauthorized access, exploitation, modification or denial of the network and network resources.For example, automatically sentiment analysis was applied to the Facebook feeds of half a million people to study emotional contagion in social networks (Kramer et al., 2014) and to 600 million ...(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 analysisThe complicated interaction patterns among heterogeneous individuals have a profound impact on the contagion process in the networks. In recent years, there has been increasing evidence for the emergence of many-body interactions between two or more nodes in a wide range of biological and social networks. To encode these …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 ...Risk-sharing and contagion in networks Antonio Cabrales University College London Piero Gottardi European University Institute Fernando Vega-Redondo Universit a Bocconi April 9, 2014 Abstract We investigate the trade-o between the risk-sharing gains enjoyed by more intercon-nected rms and the costs resulting from an increased risk exposure. Contagion in networks, [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1], [text-1-1]