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The International Trade Network (ITN) is the network formed by trade relationships between world countries. The complex structure of the ITN impacts important economic processes such as globalization, competitiveness, and the propagation of…

General Finance · Quantitative Finance 2017-05-18 Assaf Almog , Tiziano Squartini , Diego Garlaschelli

Economic and financial networks play a crucial role in various important processes, including economic integration, globalization, and financial crises. Of particular interest is understanding whether the temporal evolution of a real…

Physics and Society · Physics 2014-05-08 Tiziano Squartini , Diego Garlaschelli

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

Throughout economic history, the global economy has experienced recurring crises. The persistent recurrence of such economic crises calls for an understanding of their generic features rather than treating them as singular events. The…

Statistical Finance · Quantitative Finance 2011-04-14 Kyu-Min Lee , Jae-Suk Yang , Gunn Kim , Jaesung Lee , Kwang-Il Goh , In-mook Kim

Following the financial crisis of 2007-2008, a deep analogy between the origins of instability in financial systems and complex ecosystems has been pointed out: in both cases, topological features of network structures influence how easily…

Risk Management · Quantitative Finance 2017-02-28 Marco Bardoscia , Stefano Battiston , Fabio Caccioli , Guido Caldarelli

Many real-world systems are composed of many individual components that interact with one another in a complex pattern to produce diverse behaviors. Understanding how to intervene in these systems to guide behaviors is critically important…

Physics and Society · Physics 2018-04-04 Elena Wu-Yan , Richard F. Betzel , Evelyn Tang , Shi Gu , Fabio Pasqualetti , Danielle S. Bassett

Since 2008, the network analysis of financial systems is one of the most important subjects in economics. In this paper, we have used the complexity approach and Random Matrix Theory (RMT) for analyzing the global banking network. By…

Statistical Finance · Quantitative Finance 2020-07-30 Ali Namaki , Jamshid Ardalankia , Reza Raei , Leila Hedayatifar , Ali Hosseiny , Emmanuel Haven , G. Reza Jafari

A reflection of our ultimate understanding of a complex system is our ability to control its behavior. Typically, control has multiple prerequisites: It requires an accurate map of the network that governs the interactions between the…

Systems and Control · Computer Science 2016-09-21 Yang-Yu Liu , Albert-Laszló Barabási

Modern financial networks exhibit a high degree of interconnectedness and determining the causes of instability and contagion in financial networks is necessary to inform policy and avoid future financial collapse. In the American Economic…

Computational Finance · Quantitative Finance 2016-10-26 Brett Hemenway , Sanjeev Khanna

In the age of globalization, it is natural that the stock market of each country is not independent form the other markets. In this case, collective behavior could be emerged form their dependency together. This article studies the…

Statistical Finance · Quantitative Finance 2017-03-28 M. Saeedian , T. Jamali , M. Z. Kamali , H. Bayani , T. Yasseri , G. R. Jafari

Recent studies uncovered important core/periphery network structures characterizing complex sets of cooperative and competitive interactions between network nodes, be they proteins, cells, species or humans. Better characterization of the…

Physics and Society · Physics 2013-12-03 Peter Csermely , Andras London , Ling-Yun Wu , Brian Uzzi

Trade networks, across which countries distribute their products, are crucial components of the globalized world economy. Their structure is strongly heterogeneous across products, given the different features of the countries which buy and…

Physics and Society · Physics 2019-01-09 Carlo Piccardi , Lucia Tajoli

Economic interdependencies have become increasingly present in globalized production, financial and trade systems. While establishing interdependencies among economic agents is crucial for the production of complex products, they may also…

Physics and Society · Physics 2019-12-23 Aymeric Vié , Alfredo J. Morales

The international financial system is currently not yet prepared to face a foreseeable crisis mainly motivated by the dichotomy between the real economy and the virtual economy. Skepticism is widespread even when it comes to investments in…

General Finance · Quantitative Finance 2022-03-24 I Martín-de-Santos

This letter deals with the controllability issue of complex networks. An index is chosen to quantitatively measure the extent of controllability of given network. The effect of this index is analyzed based on empirical studies on various…

Systems and Control · Computer Science 2017-03-08 Ning Cai

Robust control theory has been successfully applied to numerous real-world problems using a small set of devices called {\it controllers}. However, the real systems represented by networks contain unreliable components and modern robust…

Physics and Society · Physics 2015-06-23 Jose C. Nacher , Tatsuya Akutsu

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…

Economy, and consequently trade, is a fundamental part of human social organization which, until now, has not been studied within the network modelling framework. Networks are mathematical tools used in the modelling of a wide variety of…

Disordered Systems and Neural Networks · Physics 2009-11-10 M. Angeles Serrano , Marian Boguna

With the random matrix theory, we study the spatial structure of the Chinese stock market, American stock market and global market indices. After taking into account the signs of the components in the eigenvectors of the cross-correlation…

General Finance · Quantitative Finance 2012-02-23 X. F. Jiang , B. Zheng

We introduce a simple model for addressing the controversy in the study of financial systems, sometimes taken as brownian-like processes and other as critical systems with fluctuations of arbitrary magnitude. The model considers a…

General Finance · Quantitative Finance 2013-01-01 João P. da Cruz , Pedro G. Lind