Hierarchical Financial Structures with Money Cascade

  • Mahendra K. VermaEmail author
Part of the New Economic Windows book series (NEW)


In this paper we show similarities between turbulence and financial systems. Motivated by similarities between the two systems, we construct a multiscale model for hierarchical financial structures that exhibits a constant cascade of wealth from large financial entities to small financial entities. According to our model, large and intermediate scale financial institutions have a power law distribution. However, it exhibits Maxwellian distribution at individual scales.



I am thankful to Anirban Chakraborti, Supratik Banerjee, Andre Sukhanovskii, Rodion Stepanov, Franck Plunian, Abhishek Kumar, and Kiran Sharma for very useful discussions and ideas.


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© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Indian Institute of Technology KanpurKanpurIndia

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