Evolution explains the way the natural world changes over time. It can also explain changes in the artificial world, such as the way ideas replicate, alter, and merge. This analogy has led to a family of related computer procedures called evolutionary algorithms. These algorithms are being used...

This paper introduces a formulation of the optimal network compression problem for financial systems. This general formulation is presented for different levels of network compression or rerouting allowed from the initial inter-bank network. We prove that this problem is, generically, NP-hard....