Helpfile for the FIN-STAB software

Notations for few essential finance parameters used by the simulator

E   total external asset         I   total inter-bank exposure         γ∈(0,1)   ratio of equity to asset
Φ   severity of shock (1 ≥ Φ > γ)         Κ∈(0,100]   percentage of nodes initially shocked          

Explanations of various software buttons

SF Graph Generation
            

Generates a homogeneous directed scale-free (SF) financial network model. Information about the following parameters will be asked during the graph generation process.

  • number of nodes (maximum: 1000, minimum: 10, default: 100)

  • average degree (maximum: 6, minimum: 1, default: 3)
   
Heterogeneous SF Graph Generation
            

Generates a heterogeneous directed scale-free (SF) financial network model. Information about the following parameters will be asked during the graph generation process.

  • number of nodes (maximum: 1000, minimum: 10, default: 100)

  • average degree (maximum: 6, minimum: 1, default: 3)

  • distribution of total asset (two options, (1) distribute 95% assets among 10% nodes and the rest uniformly, or (2) distribute 60% assets among 40% nodes and the rest uniformly; default is (1) )
   
ER Graph Generation
            

Generates a homogeneous directed Erdös-Renéyi (ER) financial network model. Information about the following parameters will be asked during the graph generation process.

  • number of nodes (maximum: 1000, minimum: 10, default: 100)

  • average degree (maximum: 6, minimum: 1, default: 3)
   
Heterogeneous ER Graph Generation
            

Generates a heterogeneous directed Erdös-Renéyi (ER) financial network model. Information about the following parameters will be asked during the graph generation process.

  • number of nodes (maximum: 1000, minimum: 10, default: 100)

  • average degree (maximum: 6, minimum: 1, default: 3)

  • distribution of total asset (two options, (1) distribute 95% assets among 10% nodes and the rest uniformly, or (2) distribute 60% assets among 40% nodes and the rest uniformly; default is (1) )
   
Inarborescence Tree Generation
            

Generates a homogeneous in-arborescence tree financial network model using the Barabasi-Albert preferential attachment method. Information about the following parameters will be asked during the graph generation process.

  • number of nodes (maximum: 1000, minimum: 10, default: 100)
   
Heterogeneous Inarborescence Tree Generation
            

Generates a heterogeneous in-arborescence tree financial network model using the Barabasi-Albert preferential attachment method. Information about the following parameters will be asked during the graph generation process.

  • number of nodes (maximum: 1000, minimum: 10, default: 100)

  • distribution of total asset (two options, (1) distribute 95% assets among 10% nodes and the rest uniformly, or (2) distribute 60% assets among 40% nodes and the rest uniformly; default is (1) )
   
   
   
Idiosyncratic shock
            

Provides an idiosyncratic (uncorrelated random) shock to some nodes in the network on the canvas and shows the effect of the shock on the entire network. Before shocking, the user will be asked for information about the following parameters:

  • severity of shock Φ ( 0 < Φ < 1, default 0.5 )

  • ratio of equity to asset γ ( 0 ≤ γ < Φ, default   9⁄10 Φ )

  • percentage of total external asset to total internal asset   E⁄I (a positive integer, default 25%)

  • percentage of nodes initially shocked Κ (a positive integer, default 10%)
By default, the user is shown the failure of banks step by step as the shock propagates. The user also has the option of
  • stopping the shock propagation simulation by using the
    stop simulation
    button

  • seeing the final result obtained by propagation of shocks by using the
    skip step-by-step simulation
    button
   
   
   
Correlated shock
            

Provides correlated shock to some nodes in the network on the canvas and shows the effect of the shock on the entire network. Before shocking, the user will be asked for information about the following parameters:

  • severity of shock Φ ( 0 < Φ < 1, default 0.5 )

  • ratio of equity to asset γ ( 0 ≤ γ < Φ, default   9⁄10 Φ )

  • percentage of total external asset to total internal asset   E⁄I (a positive integer, default 25%)

  • percentage of nodes initially shocked Κ (a positive integer, default 10%)
By default, the user is shown the failure of banks step by step as the shock propagates. The user also has the option of
  • stopping the shock propagation simulation by using the
    stop simulation
    button

  • seeing the final result obtained by propagation of shocks by using the
    skip step-by-step simulation
    button
   
   
Clear Canvas
             Clears the display and discard the currently considered network (if any).
   
Directory for Graph Storage/Retrieval
             Set the directory for storing or retrieving networks. If not set, default is the current directory.
   
Reterive graph
             Loads a graph either saved by the user after generation or provided by the user in his/her own input file.
   
Quit
             Quits the software. Be sure to save any data you need before you quit.

Copyright (C) 2013 by Bhaskar DasGupta and Lakshmi Kaligounder. This program is free software; you can redistribute it and/or modify it under the terms of the GNU General Public License as published by the Free Software Foundation; either version 2 of the License, or (at your option) any later version. This program is distributed in the hope that it will be useful, but WITHOUT ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the GNU General Public License for more details.