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On the Ollivier-Ricci curvature as fragility indicator of the stock markets

Joaquín Sánchez García, Sebastian Gherghe

arXiv 12 May 2024 · Econometrics

arXiv:2405.07134 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Recently, an indicator for stock market fragility and crash size in terms of the Ollivier-Ricci curvature has been proposed. We study analytical and empirical properties of such indicator, test its elasticity with respect to different parameters and provide heuristics for the parameters involved. We show when and how the indicator accurately describes a financial crisis. We also propose an alternate method for calculating the indicator using a specific sub-graph with special curvature properties.

Citation extraction

12
references
30
in-text mentions
10
distinct cited
0
self-citations
8,677
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1R. Sandhu , T. T. Georgiou, A.R. Tannenbaum (2016) Ricci curvature: An economic indicator for market fragility and systemic risk1.000104100%
2(2003) S. Miccichè, G. Bonanno, F. Lillo, R. Mantegna0.81142100%
3(2021) A. Samal , H. Pharasi, J.S. Ramaia, H. Kannan, E. Saucan, J. Jost, A. Chakraborti0.73732100%
4(2010) C. K. Tse, J. Liu, F. C. M. Lau0.73732100%
5(2016) O.V. Rubleva0.73732100%
6(2006) V. Boginski, S. Butenko, P. M. Pardalos0.64422100%
7(2023) S. Wu, H. Cheng, J. Cai, P. Ma, w.Zhong0.51121100%
8(2020) R.J. McCann0.40511100%
9F. Santambrogio0.40511100%
10(2009) C. Villani0.40511100%

Showing the top 10 of 10 scored citations.