Financial networks, an overview
Visiting Speaker
Past Talk
Guido Caldarelli
Full Professor in Theoretical Physics, Ca'Foscari
Monday
Jun 13, 2022
Watch video
Time TBA
12:00 pm
177 Huntington Ave
11th floor
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As the total value of the global financial market outgrew the value of the real economy, financial institutions created a global web of interactions that embodies systemic risks. Understanding these networks requires new theoretical approaches and new tools for quantitative analysis. Statistical physics contributed significantly to this challenge by developing new metrics and models for the study of financial network structure, dynamics, and stability and instability. In this Review, we introduce network representations originating from different financial relationships, including direct interactions such as loans, similarities such as co-​ownership and higher-​order relations such as contracts involving several parties (for example, credit default swaps) or multilayer connections (possibly extending to the real economy). We then review models of financial contagion capturing the diffusion and impact of shocks across each of these systems. We also discuss different notions of 'equilibrium' in economics and statistical physics, and how they lead to maximum entropy ensembles of graphs, providing tools for financial network inference and the identification of early-​warning signals of system-​wide instabilities

About the speaker
About the speaker
Guido Caldarelli, Full Professor in Theoretical Physics at Ca'Foscari in Venice, Italy got is PhD in SISSA Trieste and moved to UK in Cambridge University, after which he came back to Italy working in the National Institute for Condensed Matter Physics and later in the National Research Council. Author of more than 200 publications and three books on the topic of statistical physics of networks is APS Fellow, Netsci honorary fellow and member of Academia Europaea, he is one of the founders of Netsci Society and he has been the 5th President of the Complex Systems Society.
Guido Caldarelli, Full Professor in Theoretical Physics at Ca'Foscari in Venice, Italy got is PhD in SISSA Trieste and moved to UK in Cambridge University, after which he came back to Italy working in the National Institute for Condensed Matter Physics and later in the National Research Council. Author of more than 200 publications and three books on the topic of statistical physics of networks is APS Fellow, Netsci honorary fellow and member of Academia Europaea, he is one of the founders of Netsci Society and he has been the 5th President of the Complex Systems Society.