Mitigating cascades in sandpile models: an immunization strategy for systemic risk?

Cascades on a random graph

Journal de Physique IV 225, 2017 (2016)

A. Scala, V. Zlatić, G. Caldarelli, G. D’Agostino

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We use a simple model of distress propagation (the sandpile model) to show how financial systems are naturally subject to the risk of systemic failures. Taking into account possible network structures among financial institutions, we investigate if simple policies can limit financial distress propagation to avoid system-wide crises, i.e. to dampen systemic risk. We therefore compare different immunization policies (i.e. targeted helps to financial institutions) and find that the information coming from the network topology allows to mitigate systemic cascades by targeting just few institutions.

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Imaginary replica analysis of loopy regular random graphs

F. Lopez, T. Coolen

Sub. to Journal of Physics A

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Taming complexity

M. Reeves, S. Levin, T. Fink, A. Levina

Harvard Business Review

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Degree-correlations in a bursting dynamic network model

F. Vanni, P. Barucca

Journal of Economic Interaction and Coordination

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Scale of non-locality for a system of n particles

S. Talaganis, I. Teimouri

Sub. to Physical Review D

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