Related papers: A Simple Measure of Economic Complexity
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…
Can trade integration induce product innovation? I document that countries that joined the European Union (EU) started producing more product varieties, investing more in R&D, and trading more compared to candidate countries that did not…
We investigate the convergence properties of an algorithm which has been recently proposed to measure the competitiveness of countries and the quality of their exported products. These quantities are called respectively Fitness F and…
Quantifying the evolution and complexity of materials is of importance in many areas of science and engineering, where a central open challenge is developing experimental complexity measurements to distinguish random structures from evolved…
Concepts used in the scientific study of complex systems have become so widespread that their use and abuse has led to ambiguity and confusion in their meaning. In this paper we use information theory to provide abstract and concise…
Process mining is a research area focusing on the design of algorithms that can automatically provide insights into business processes. Among the most popular algorithms are those for automated process discovery, which have the ultimate…
We analyze export data aggregated at world global level of 219 classes of products over a period of 39 years. Our main goal is to set up a dynamical model to identify and quantify plausible mechanisms by which the evolutions of the various…
This study investigates the structural embeddedness of skills in the division of labor. Drawing on O*NET data covering 120 skills across 872 U.S. occupations, we identify three skill communities: general, cognitive, and physical skills.…
Entropy-based confidence signals are increasingly leveraged to improve reasoning in large language models (LLMs), yet existing approaches treat confidence as a static quantity -- typically aggregated over tokens. We show that the…
We propose to examine the predictability and the complexity characteristics of the Standard&Poor500 dynamics behaviors in a coarse-grained way using the symbolic dynamics method and under the prism of the Information theory through the…
There is no single universally accepted definition of "Complexity". There are several perspectives on complexity and what constitutes complex behaviour or complex systems, as opposed to regular, predictable behaviour and simple systems. In…
Countries tend to diversify their exports by entering products that are related to their current exports. Yet this average behavior is not representative of every diversification path. In this paper, we introduce a method to identify…
CoCoE stands for Complexity, Coherence and Entropy, and presents an extensible methodology for empirical analysis of Linked Open Data (i.e., RDF graphs). CoCoE can offer answers to questions like: Is dataset A better than B for knowledge…
We study a simple model for the evolution of the cost (or more generally the performance) of a technology or production process. The technology can be decomposed into $n$ components, each of which interacts with a cluster of $d-1$ other,…
Against the background of renewed interest in vertical support policies targeting specific industries or technologies, we investigate the effects of vertical vs. horizontal policies in a combinatorial model of economic development. In the…
We introduce the Economic Productivity of Energy (EPE), GDP generated per unit of energy consumed, as a quantitative lens to assess the sustainability of the Artificial Intelligence (AI) revolution. Historical evidence shows that the first…
Given the importance of urban sustainability and resilience to the future of our planet, there is a need to better understand the interconnectedness between the social, economic, environmental, and governance outcomes that underline these…
Recently it has been argued that entropy can be a direct measure of complexity, where the smaller value of entropy indicates lower system complexity, while its larger value indicates higher system complexity. We dispute this view and…
In this paper, we investigate the nature of the density metric, which is employed in the literature on smart specialization and the product space. We find that although density is supposed to capture relatedness between a country's current…
We consider the sectoral composition of a country's GDP, i.e. the partitioning into agrarian, industrial, and service sectors. Exploring a simple system of differential equations we characterize the transfer of GDP shares between the…