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Why do capitalist economies recurrently generate crises whose severity is disproportionate to the size of the triggering shock? This paper proposes a structural answer grounded in the evolutionary geometry of production networks. As…

Physics and Society · Physics 2026-04-16 Diego Vallarino

Recent studies have found evidence of a negative association between economic complexity and inequality at the country level. Moreover, evidence suggests that sophisticated economies tend to outsource products that are less desirable (e.g.…

General Economics · Economics 2022-06-08 Dominik Hartmann , Flavio L. Pinheiro

In recent years, methods from network science are gaining rapidly interest in economics and finance. A reason for this is that in a globalized world the interconnectedness among economic and financial entities are crucial to understand and…

Various social, financial, biological and technological systems can be modeled by interdependent networks. It has been assumed that in order to remain functional, nodes in one network must receive the support from nodes belonging to…

Physics and Society · Physics 2017-12-01 M. A. Di Muro , L. D. Valdez , H. H. A. Rêgo , S. V. Buldyrev , H. E. Stanley , L. A. Braunstein

About two million U.S. corporations and partnerships are linked to each other and human investors by about 15 million owner-subsidiary links. Comparable social networks such as corporate board memberships and socially-built systems such as…

General Economics · Economics 2024-01-23 Ben Klemens

To improve the quality of life in a modern society it is essential to reduce the distance between basic research and applications, whose crucial roles in shaping today's society prompt us to seek their understanding. Existing studies on…

Physics and Society · Physics 2009-11-13 J. A. Almendral , J. G. Oliveira , L. López , M. A. F. Sanjuán , J. F. F. Mendes

We present a methodology to extract the backbone of complex networks based on the weight and direction of links, as well as on nontopological properties of nodes. We show how the methodology can be applied in general to networks in which…

General Finance · Quantitative Finance 2010-06-23 J. B. Glattfelder , S. Battiston

Collaboration networks are studied as an example of growing bipartite networks. These have been previously observed to have structure such as positive correlations between nearest-neighbour degrees. However, a detailed understanding of the…

Physics and Society · Physics 2009-11-11 Matti Peltomaki , Mikko Alava

With globalization, countries are more connected than before by trading flows, which currently amount to at least 36 trillion dollars. Interestingly, approximately 30-60 percent of global exports consist of intermediate products. Therefore,…

General Finance · Quantitative Finance 2017-02-08 Peiteng Shi , Jiang Zhang , Bo Yang , Jingfei Luo

Supply chains need to balance competing objectives; in addition to efficiency they need to be resilient to adversarial and environmental interference, and robust to uncertainties in long term demand. Significant research has been conducted…

Physics and Society · Physics 2020-03-05 Bruce A. Cox , Christopher M. Smith , Timothy W. Breitbach , Jade F. Baker , Paul P. Rebeiz

In social network markets, the act of consumer choice in these industries is governed not just by the set of incentives described by conventional consumer demand theory, but by the choices of others in which an individual's payoff is an…

Social and Information Networks · Computer Science 2012-10-08 Paul Ormerod , Bassel Tarbush , R. Alexander Bentley

Cities are widely considered the lifeblood of a nations economy housing the bulk of industries, commercial and trade activities, and employment opportunities. Within this economic context, multinational corporations play an important role…

Physics and Society · Physics 2024-12-05 Mohammad Yousuf Mehmood , Syed Junaid Haqqani , Faraz Zaidi , Celine Rozenblat

Advanced economies exhibit a high degree of sophistication in the creation of various products. While critical to such sophistication, the nature and underlying structure of the interactions taking place inside production processes remain…

General Economics · Economics 2023-08-01 Hardik Rajpal , Omar A Guerrero

"Data" is becoming an indispensable production factor, just like land, infrastructure, labor or capital. As part of this, a myriad of applications in different sectors require huge amounts of information to feed models and algorithms…

Databases · Computer Science 2022-01-13 Santiago Andrés Azcoitia , Nikolaos Laoutaris

Network-based marketing refers to a collection of marketing techniques that take advantage of links between consumers to increase sales. We concentrate on the consumer networks formed using direct interactions (e.g., communications) between…

Statistics Theory · Mathematics 2007-06-13 Shawndra Hill , Foster Provost , Chris Volinsky

Inspired by empirical studies of networked systems such as the Internet, social networks, and biological networks, researchers have in recent years developed a variety of techniques and models to help us understand or predict the behavior…

Statistical Mechanics · Physics 2015-06-24 M. E. J. Newman

A growing body of research documents that the size and growth of an industry in a place depends on how much related activity is found there. This fact is commonly referred to as the "principle of relatedness". However, there is no consensus…

Physics and Society · Physics 2023-03-30 Yang Li , Frank Neffke

Labor market institutions are central for modern economies, and their polices can directly affect unemployment rates and economic growth. At the individual level, unemployment often has a detrimental impact on people's well-being and…

Social and Information Networks · Computer Science 2016-09-07 Abdullah Almaatouq

We model sectoral production by cascading binary compounding processes. The sequence of processes is discovered in a self-similar hierarchical structure stylized in the economy-wide networks of production. Nested substitution elasticities…

General Economics · Economics 2024-12-31 Satoshi Nakano , Kazuhiko Nishimura

A multi-regional input-output table (MRIOT) containing the transactions among the region-sectors in an economy defines a weighted and directed network. Using network analysis tools, we analyze the regional and sectoral structure of the…

Physics and Society · Physics 2021-07-14 Tao Wang , Shiying Xiao , Jun Yan , Panpan Zhang