Information dissipation as an early-warning signal for the Lehman Brothers collapse in financial time series

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Information dissipation as an early-warning signal for the Lehman Brothers collapse in financial time series

In financial markets, participants locally optimize their profit which can result in a globally unstable state leading to a catastrophic change. The largest crash in the past decades is the bankruptcy of Lehman Brothers which was followed by a trust-based crisis between banks due to high-risk trading in complex products. We introduce information dissipation length (IDL) as a leading indicator o...

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ژورنال

عنوان ژورنال: Scientific Reports

سال: 2013

ISSN: 2045-2322

DOI: 10.1038/srep01898