Algorithmic search of debt cycles in an economic environment

Zsombor, Baranyi and Marcell, György Gyurászik and Körmöczi, Koppány István (2026) Algorithmic search of debt cycles in an economic environment. GRADUS, 13 (1). ISSN 2064-8014

Preview

Text 2026_1_CSC_007_Baranyi.pdf - Published Version Download (312kB) | Preview

Abstract

This study’s focus is on finding a proper algorithm that can identify cycles in an economic environment. Such environments can be represented as weighed directed graphs. In these graphs the vertices are the participants of the economy, and the arcs are the pending payments between them. If a graph includes a debt circle that circle can be eliminated or more precisely every arc’s weight can be reduced with the cycle’s smallest value arc. This is why we must find all these circles because removing them increases economic efficiency. For testing the algorithm in our perspective, we had to make randomized testing environments. First, we declared a static case when the environment does not change overtime. And then a dynamic one which is changing like a real-world economic system. This dynamic case has parameters that can be modified depending on what kind of environment we want to create and how it will represent a real-world case.

Actions (login required)

View Item