Spectral evolution of magnetic flares and time lags in accreting black   hole sources
  We present a model for the short timescale spectral variability of accreting black holes. It describes well the time-averaged spectra as well as temporal characteristics such as power-density spectrum, time/phase lags, and coherence function of Cygnus X-1. We assume that X/gamma-rays are produced in compact magnetic flares at radii < 100GM/c^2 from the central black hole. The tendency for magnetic loops to inflate and detach from the underlying accretion disc causes the spectrum of a flare to evolve from soft to hard due to the decrease of the feedback from the cold disc, so causing time delays between hard and soft photons. We identify the observed time lags with the evolution timescales of the flares, which are of the order of the Keplerian timescale. We model the overall temporal variability using a pulse avalanche model in which each flare has a certain probability to trigger a neighbouring flare, thus occasionally producing long avalanches. The duration of the avalanches determines the Fourier frequencies where most of the power emerges. 
Juri Poutanen and Andrew C. Fabian