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In the last years efforts in econophysics have been shifted to study how network theory can facilitate understanding of complex financial markets. Main part of these efforts is the study of correlation-based hierarchical networks. This is…

Statistical Finance · Quantitative Finance 2014-06-18 Paweł Fiedor

Economy correlations between the 19 richest countries are investigated through their Gross Domestic Product increments. A distance is defined between increment correlation matrix elements and their evolution studied as a function of time…

Data Analysis, Statistics and Probability · Physics 2012-10-03 Janusz Miskiewicz , Marcel Ausloos

Real-world multi-layer networks feature nontrivial dependencies among links of different layers. Here we argue that, if links are directed, dependencies are twofold. Besides the ordinary tendency of links of different layers to align as the…

Countries participate in global value chains by engaging in backward and forward transactions connecting multiple geographically dispersed production stages. Inspired by network theory, we model global trade as a multilayer network and…

Physics and Society · Physics 2021-12-14 Luiz G. A. Alves , Giuseppe Mangioni , Francisco A. Rodrigues , Pietro Panzarasa , Yamir Moreno

We study the relationship between foreign debt and GDP growth using a panel dataset of 50 countries from 1997 to 2015. We find that economic growth correlates positively with foreign debt and that the relationship is causal in nature by…

General Economics · Economics 2022-11-08 Tomoo Kikuchi , Satoshi Tobe

The initial Climate-Extended Risk Model (CERM) addresses the estimate of climate-related financial risk embedded within a bank loan portfolio, through a climatic extension of the Basel II IRB model. It uses a Gaussian copula model…

Risk Management · Quantitative Finance 2022-05-06 Jean-Baptiste Gaudemet , Jules Deschamps , Olivier Vinciguerra

This paper introduces a novel method for estimating material flows, with a focus on tracing phosphate flows from mining countries to those using phosphate in agricultural production. Our approach integrates data on phosphate rock…

General Economics · Economics 2025-07-14 Matthias Raddant , Martin Bertau , Gerald Steiner

Human social networks are inherently multiplex, comprising overlapping layers of relationships. Different layers may have distinct structural properties and interpersonal dynamics, but also may interact to form complex interdependent…

Social and Information Networks · Computer Science 2025-10-22 Yongren Shi , Edo Airoldi , Nicholas A. Christakis

We consider the effects of the 2008 global financial crisis on the global stock market before, during, and after the crisis. We generate complex networks from a cross-correlation matrix such as the threshold network (TN) and the minimal…

General Finance · Quantitative Finance 2018-06-13 Jae Woo Lee , Ashadun Nobi

In a previous work, we applied a field formalism to analyze capital allocation and accumulation within a network of investors and firms. In that framework, financial agents could invest in firms or in other investors, and banks-introduced…

Other Condensed Matter · Physics 2025-11-06 Pierre Gosselin , Aïleen Lotz

Extreme weather events can have severe impacts on national economies, leading the recovery of low- to middle-income countries to become reliant on foreign financial aid. Foreign aid, however, is slow and uncertain. Therefore, the Sendai…

Risk Management · Quantitative Finance 2022-06-29 Alessio Ciullo , Eric Strobl , Simona Meiler , Olivia Martius , David N. Bresch

Financial transactions constitute connections between entities and through these connections a large scale heterogeneous weighted graph is formulated. In this labyrinth of interactions that are continuously updated, there exists a variety…

Machine Learning · Computer Science 2020-07-02 Antonia Gogoglou , Brian Nguyen , Alan Salimov , Jonathan Rider , C. Bayan Bruss

Using a large quarterly macroeconomic dataset for the period 1960-2017, we document the ability of specific financial ratios from the housing market and firms' aggregate balance sheets to predict GDP over medium-term horizons in the United…

Econometrics · Economics 2024-01-22 Graziano Moramarco

We test the hypothesis that interconnections across financial institutions can be explained by a diversification motive. This idea stems from the empirical evidence of the existence of long-term exposures that cannot be explained by a…

Risk Management · Quantitative Finance 2015-02-24 Jean-Cyprien Héam , Erwan Koch

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

This paper employs a weighted network approach to study the empirical properties of the web of trade relationships among world countries, and its evolution over time. We show that most countries are characterized by weak trade links; yet,…

Social and Information Networks · Computer Science 2018-03-21 Maddalena D'Anna , Alfredo Petrosino

We report quantitative relations between corruption level and economic factors, such as country wealth and foreign investment per capita, which are characterized by a power law spanning multiple scales of wealth and investments per capita.…

General Finance · Quantitative Finance 2009-11-13 Jia Shao , Plamen Ch. Ivanov , Boris Podobnik , H. Eugene Stanley

Since 2007, several contributions have tried to identify early-warning signals of the financial crisis. However, the vast majority of analyses has focused on financial systems and little theoretical work has been done on the economic…

Physics and Society · Physics 2016-08-04 Fabio Saracco , Riccardo Di Clemente , Andrea Gabrielli , Tiziano Squartini

The complexity of interactions between networks and territories has been widely acknowledged empirically, in particular through the existence of circular causal relations in their co-development, that can be understood as a co-evolution.…

Physics and Society · Physics 2018-09-06 Juste Raimbault

Countries and cities are likely to enter economic activities that are related to those that are already present in them. Yet, while these path dependencies are universally acknowledged, we lack an understanding of the diversification…

Physics and Society · Physics 2018-05-09 Aamena Alshamsi , Flavio L. Pinheiro , Cesar A. Hidalgo