Year

Efficiency of fractal branching columns with constant branching angle

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Physical Review E

122 views

Network valuation in financial systems

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Mathematical Finance

146 views

Tunnelling necessitates negative Wigner function

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Physical Review Letters

121 views

Disentangling group and link persistence in Dynamic Stochastic Block models

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Journal of Statistical Physics

94 views

Resolution of ranking hierarchies in directed networks

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PLOS ONE

85 views

Exactly solvable model of memristive circuits: Lyapunov functional and mean field theory

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European Physical Journal B

108 views

How much can we influence the rate of innovation?

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Science Advances

107 views

Exactly solvable random graph ensemble with extensively many short cycles

Journal of Physics A: Mathematical and Theoretical

118 views

How well do experience curves predict technological progress? A method for making distributional forecasts

Technological Forecasting and Social Change

77 views

Eigenvalues of subgraphs of the cube

European Journal of Combinatorics

2 views

From ecology to finance (and back?): a review on entropy-based null models for the analysis of bipartite networks

Journal of Statistical Physics

6 views

A holistic approach for collaborative workload execution in volunteer clouds

ACM Transactions on Modeling and Computer Simulation

3 views

Network models of financial systemic risk: a review

Journal of Computational Social Science

7 views

117 papers

Pathways towards instability in financial networks

Nature Communications

8,
14416 (2017)

Following the financial crisis of 2007–2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily distress can spread within the system. However, in financial network models, the details of how financial institutions interact typically play a decisive role, and a general understanding of precisely how network topology creates instability remains lacking. Here we show how processes that are widely believed to stabilize the financial system, that is, market integration and diversification, can actually drive it towards instability, as they contribute to create cyclical structures which tend to amplify financial distress, thereby undermining systemic stability and making large crises more likely. This result holds irrespective of the details of how institutions interact, showing that policy- relevant analysis of the factors affecting financial stability can be carried out while abstracting away from such details.