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Basel II in question: the unfolding of the American real estate crisis

2008/01/01 by Lasse Laurson, M. Carmen Miguel, M. -Carmen Miguel +4 · 2 citations
Economics, Econometrics and Finance · Materials Science · Physics and Astronomy · #Accounting #Balance sheet #Banking stability, regulation, efficiency #Basel I #Basel II #Business #Capital requirement #Condensed matter physics #Consolidation (business) #Credit default swap #Credit risk #Dislocation #Economic Theory and Policy #Economics #Finance #Financial crisis #Financial system #Force Microscopy Techniques and Applications #Geometry #Housing, Finance, and Neoliberalism #Jamming #Market economy #Material Dynamics and Properties #Operational risk #Perpendicular #Phase transition #Physics #Quantum mechanics #Real estate #Risk management #Scaling #Securitization #Sigma #Statistical physics #Systemic risk #Theoretical and Computational Physics #cond-mat.mtrl-sci #cond-mat.stat-mech

paper · pdf · open access · doi:10.1103/physrevlett.105.015501

published in Physical Review Letters 105(1), 015501 (American Physical Society) · 4 pages, 5 figures

openalex publication_date 2008/01/01 · arxiv created 2010/02/12 · arxiv updated 2015/05/18 · openalex created_date 2016/06/24 · openalex updated_date 2026/06/11

Abstract

Dislocation assemblies exhibit a jamming or yielding transition at a critical external shear stress value σ=σc. Here we study the heterogeneous and collective nature of dislocation dynamics within a crystal plasticity model close to σc, by considering the first-passage properties of the dislocation dynamics. As the transition is approached in the moving phase, the first-passage time distribution exhibits scaling, and a related peak dynamical susceptibility χ4* diverges as χ4*∼(σ-σc)-α, with α≈1.1. We relate this scaling to an avalanche description of the dynamics. While the static structural correlations are found to be independent of the external stress, we identify a diverging dynamical correlation length ξy in the direction perpendicular to the dislocation glide motion.

Citations