TY  - JOUR
UR  - http://www.nature.com/srep/2013/130926/srep02759/full/srep02759.html
IS  - 2759
KW  - Computational science
KW  -  Applied physics
AV  - public
ID  - eprints2698
TI  - Default Cascades in Complex Networks: Topology and Systemic Risk
SP  - 1
A1  - Roukny, Tarik
A1  - Bersini, Hugues
A1  - Pirotte, Hugues
A1  - Caldarelli, Guido
A1  - Battiston, Stefano 
EP  - 8
VL  - 3
PB  - Nature Publishing Group
N2  - The recent crisis has brought to the fore a crucial question that remains still open: what would be the optimal architecture of financial systems? We investigate the stability of several benchmark topologies in a simple default cascading dynamics in bank networks. We analyze the interplay of several crucial drivers, i.e., network topology, banks' capital ratios, market illiquidity, and random vs targeted shocks. We find that, in general, topology matters only ? but substantially ? when the market is illiquid. No single topology is always superior to others. In particular, scale-free networks can be both more robust and more fragile than homogeneous architectures. This finding has important policy implications. We also apply our methodology to a comprehensive dataset of an interbank market from 1999 to 2011.
JF  - Scientific Reports
Y1  - 2013///
SN  - 2045-2322
ER  -