Magnetic reconnection: flares and coronal heating in Active Galactic Nuclei

A magnetically-structured accretion disk corona, generated by buoyancy instability in the disk, can account for observations of flare--like events in Active Galactic Nuclei. We examine how Petschek magnetic reconnection, associated with MHD turbulence, can result in a violent release of energy and heat the magnetically closed regions of the corona up to canonical X-ray emitting temperatures. X-ray magnetic flares, the after effect of the energy released in slow shocks, can account for the bulk of the X-ray luminosity from Seyfert galaxies and consistently explain the observed short-timescale variability.Comment: revised version, 6 pages, 1 figures in MNRAS LaTex styl

Exchanges in complex networks: income and wealth distributions

We investigate the wealth evolution in a system of agents that exchange wealth through a disordered network in presence of an additive stochastic Gaussian noise. We show that the resulting wealth distribution is shaped by the degree distribution of the underlying network and in particular we verify that scale free networks generate distributions with power-law tails in the high-income region. Numerical simulations of wealth exchanges performed on two different kind of networks show the inner relation between the wealth distribution and the network properties and confirm the agreement with a self-consistent solution. We show that empirical data for the income distribution in Australia are qualitatively well described by our theoretical predictions.Comment: 8 pages, 11 figure

Ion-supported tori: a thermal bremsstrahlung model for the X-ray Background

We discuss the possibility that a significant contribution of the hard X-ray Background is the integrated emission from a population of galaxies undergoing advection-dominated accretion in their nuclei. Owing to poor coupling between ions and electrons and to efficient radiative cooling of the electrons, the accreting plasma is two-temperature, with the ions being generally much hotter than the electrons and forming an ion-supported torus. We show that the electron te mperature then saturates at approximately 100keV independent of model parameters. At this temperature the hard X-ray emission is dominated by bremsstrahlung radiation. We find that this physical model gives an excellent fit to the spectrum of the XRB in the 3-60 keV range, provided that there is some evolution associated with the spectral emissivity which must peak at a redshift of about 2. We estimate that such galaxies contribute only to a small fraction of the local X-ray volume emissivity. The model implies a higher mean black hole mass than is obtained from the evolution of quasars alone.Comment: 7 pages, 7 ps figures, uses mn.sty (included). Submitted for publication to MNRA

Long term memories of developed and emerging markets: using the scaling analysis to characterize their stage of development

The scaling properties encompass in a simple analysis many of the volatility characteristics of financial markets. That is why we use them to probe the different degree of markets development. We empirically study the scaling properties of daily Foreign Exchange rates, Stock Market indices and fixed income instruments by using the generalized Hurst approach. We show that the scaling exponents are associated with characteristics of the specific markets and can be used to differentiate markets in their stage of development. The robustness of the results is tested by both Monte-Carlo studies and a computation of the scaling in the frequency-domain.Comment: 46 pages, 7 figures, accepted for publication in Journal of Banking & Financ

kGamma distributions in granular packs

It has been recently pointed out that local volume fluctuations in granular packings follow remarkably well a shifted and rescaled Gamma distribution named the kGamma distribution [T. Aste, T. Di Matteo, Phys. Rev. E 77 (2008) 021309]. In this paper we confirm, extend and discuss this finding by supporting it with additional experimental and simulation data.Comment: 10 pages, 5 figure

Nested hierarchies in planar graphs

We construct a partial order relation which acts on the set of 3-cliques of a maximal planar graph G and defines a unique hierarchy. We demonstrate that G is the union of a set of special subgraphs, named `bubbles', that are themselves maximal planar graphs. The graph G is retrieved by connecting these bubbles in a tree structure where neighboring bubbles are joined together by a 3-clique. Bubbles naturally provide the subdivision of G into communities and the tree structure defines the hierarchical relations between these communities

Non stationary multifractality in stock returns

We perform an extensive empirical analysis of scaling properties of equity returns, suggesting that financial data show time varying multifractal properties. This is obtained by comparing empirical observations of the weighted generalised Hurst exponent (wGHE) with time series simulated via Multifractal Random Walk (MRW) by Bacry \textit{et al.} [\textit{E.Bacry, J.Delour and J.Muzy, Phys.Rev.E \,{\bf 64} 026103, 2001}]. While dynamical wGHE computed on synthetic MRW series is consistent with a scenario where multifractality is constant over time, fluctuations in the dynamical wGHE observed in empirical data are not in agreement with a MRW with constant intermittency parameter. We test these hypotheses of constant multifractality considering different specifications of MRW model with fatter tails: in all cases considered, although the thickness of the tails accounts for most of anomalous fluctuations of multifractality, still cannot fully explain the observed fluctuations.Comment: 27 pages, 10 figure

Anomalous volatility scaling in high frequency financial data

Volatility of intra-day stock market indices computed at various time horizons exhibits a scaling behaviour that differs from what would be expected from fractional Brownian motion (fBm). We investigate this anomalous scaling by using empirical mode decomposition (EMD), a method which separates time series into a set of cyclical components at different time-scales. By applying the EMD to fBm, we retrieve a scaling law that relates the variance of the components to a power law of the oscillating period. In contrast, when analysing 22 different stock market indices, we observe deviations from the fBm and Brownian motion scaling behaviour. We discuss and quantify these deviations, associating them to the characteristics of financial markets, with larger deviations corresponding to less developed markets.Comment: 25 pages, 11 figure, 5 table

Long-term memories of developed and emerging markets: Using the scaling analysis to characterize their stage of development

The scaling properties encompass in a simple analysis many of the volatility characteristics of financial markets. That is why we use them to probe the different degree of markets development. We empirically study the scaling properties of daily Foreign Exchange rates, Stock Market indices and fixed income instruments by using the generalized Hurst approach. We show that the scaling exponents are associated with characteristics of the specific markets and can be used to differentiate markets in their stage of development. The robustness of the results is tested by both Monte-Carlo studies and a computation of the scaling in the frequency-domain.Scaling exponents; Time series analysis; Multi-fractals