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In this paper we develop a novel hidden Markov graphical model to investigate time-varying interconnectedness between different financial markets. To identify conditional correlation structures under varying market conditions and…

Methodology · Statistics 2024-12-06 Beatrice Foroni , Luca Merlo , Lea Petrella

It is well-established that the process of learning and capability building is core to economic development and structural transformation. Since knowledge is `sticky', a key component of this process is learning-by-doing, which can be…

Social and Information Networks · Computer Science 2021-06-02 John Fitzgerald , Sanna Ojanperä , Neave O'Clery

Social and biological contagions are influenced by the spatial embeddedness of networks. Historically, many epidemics spread as a wave across part of the Earth's surface; however, in modern contagions long-range edges -- for example, due to…

Adaptation and Self-Organizing Systems · Physics 2015-07-31 Dane Taylor , Florian Klimm , Heather A. Harrington , Miroslav Kramar , Konstantin Mischaikow , Mason A. Porter , Peter J. Mucha

A small-world topology characterizes many complex systems including the structural and functional organization of brain networks. The topology allows simultaneously for local and global efficiency in the interaction of the system…

Physics and Society · Physics 2015-05-30 Sinisa Pajevic , Dietmar Plenz

We draw on the data collected by the Integrated Crisis Early Warning System on millions of international and regional public news stories, and this system's indicators of the orientation toward a specific nation-state. We construct the…

Social and Information Networks · Computer Science 2020-05-14 Omid Askarisichania , Ambuj K. Singh , Francesco Bullo , Noah E. Friedkin

The level of systemic risk in economic and financial systems is strongly determined by the structure of the underlying networks of interdependent entities that can propagate shocks and stresses. Since changes in network structure imply…

We study the role of contingent convertible bonds (CoCos) in a complex network of interconnected banks. By studying the system's phase transitions, we reveal that the structure of the interbank network is of fundamental importance for the…

General Finance · Quantitative Finance 2023-12-22 Giovanni Calice , Carlo Sala , Daniele Tantari

A major impact of globalization has been the information flow across the financial markets rendering them vulnerable to financial contagion. Research has focused on network analysis techniques to understand the extent and nature of such…

Statistical Finance · Quantitative Finance 2019-11-15 Sayantan Banerjee , Kousik Guhathakurta

We contribute to the understanding of how systemic risk arises in a network of credit-interlinked agents. Motivated by empirical studies we formulate a network model which, despite its simplicity, depicts the nature of interbank markets…

Risk Management · Quantitative Finance 2014-06-26 Oliver Kley , Claudia Klüppelberg , Lukas Reichel

Studies built on dependency and world-system theory using network approaches have shown that international trade is structured into clusters of 'core' and 'peripheral' countries performing distinct functions. However, few have used these…

General Economics · Economics 2023-10-13 Fabio Ashtar Telarico

Understanding how information flows through the financial networks is important, especially during times of market turbulence. Unlike traditional assumptions where information travels along the shortest paths, real-world diffusion processes…

Statistical Finance · Quantitative Finance 2025-09-12 Pawanesh Pawanesh , Charu Sharma , Niteesh Sahni

The weighted and directed network of countries based on the number of overseas banks is analyzed in terms of its fragility to the banking crisis of one country. We use two different models to describe transmission of shocks, one local and…

Physics and Society · Physics 2014-03-07 Xiaobing Feng , Woo Seong Jo , Beom Jun Kim

This study uses hierarchical structure methods (minimal spanning tree, (MST) and hierarchical tree, (HT)) to examine the hierarchical structures of the United State (US) foreign trade by using the real prices of their commodity export and…

Statistical Finance · Quantitative Finance 2014-06-30 Ersin Kantar

This study examines the effects of de-globalization trends on international trade networks and their role in improving forecasts for economic growth. Using section-level trade data from nearly 200 countries from 2010 to 2022, we identify…

General Economics · Economics 2024-04-16 Thiago C. Silva , Paulo V. B. Wilhelm , Diego R. Amancio

The topology of many real complex networks has been conjectured to be embedded in hidden metric spaces, where distances between nodes encode their likelihood of being connected. Besides of providing a natural geometrical interpretation of…

Physics and Society · Physics 2017-01-23 Antoine Allard , M. Ángeles Serrano , Guillermo García-Pérez , Marián Boguñá

Urban morphology and socioeconomic aspects of cities have been explored by analysing urban street network. To analyse the network, several variations of the centrality indices are often used. However, its nature has not yet been widely…

Physics and Society · Physics 2021-03-23 Kaoru Yamaoka , Yusuke Kumakoshi , Yuji Yoshimura

Supplementing a lattice with long-range connections effectively models small-world networks characterized by a high local and global interconnectedness observed in systems ranging from society to the brain. If the links have a wiring cost…

Disordered Systems and Neural Networks · Physics 2007-05-23 Thomas Petermann , Paolo De Los Rios

Geographic dispersion of depositors, borrowers, and banks may prevent funding from flowing to high loan demand areas, limiting credit access. Using bank-county-year level data, we provide evidence of the geographic imbalance of deposits and…

General Economics · Economics 2024-07-08 Victor Aguirregabiria , Robert Clark , Hui Wang

Over the past decade, Internet centralization and its implications for both people and the resilience of the Internet has become a topic of active debate. While the networking community informally agrees on the definition of centralization,…

Networking and Internet Architecture · Computer Science 2025-04-29 Gautam Akiwate , Kimberly Ruth , Rumaisa Habib , Zakir Durumeric

Food security is a critical issue closely linked to human being. With the increasing demand for food, international trade has become the main access to supplementing domestic food shortages, which not only alleviates local food shocks, but…

Physics and Society · Physics 2024-08-07 Yin-Ting Zhang , Wei-Xing Zhou
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