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We study the mean field approximation of a recent model of cascades on networks relevant to the investigation of systemic risk control in financial networks. In the model, the hypothesis of a trend reinforcement in the stochastic process…

Physics and Society · Physics 2007-11-13 Jan Lorenz , Stefano Battiston

Inter-firm organizations, which play a driving role in the economy of a country, can be represented in the form of a customer-supplier network. Such a network exhibits a heavy-tailed degree distribution, disassortative mixing and a…

Physics and Society · Physics 2018-09-19 Abhijit Chakraborty , Hazem Krichene , Hiroyasu Inoue , Yoshi Fujiwara

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

During the last decades two important contributions have reshaped our understanding of international trade. First, countries trade more with those with whom they share history, language, and culture, suggesting that trade is limited by…

Economics · Quantitative Finance 2017-09-19 Bogang Jun , Aamena Alshamsi , Jian Gao , Cesar A Hidalgo

We derive a composite centrality measure for general weighted and directed complex networks, based on measure standardisation and invariant statistical inheritance schemes. Different schemes generate different intermediate abstract measures…

Methodology · Statistics 2014-01-21 Andreas Joseph , Guanrong Chen

The recent high level of interest in weighted complex networks gives rise to a need to develop new measures and to generalize existing ones to take the weights of links into account. Here we focus on various generalizations of the…

Statistical Mechanics · Physics 2013-05-29 J. Saramaki , M. Kivela , J. -P. Onnela , K. Kaski , J. Kertesz

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

Just as a herd of animals relies on its robust social structure to survive in the wild, similarly robustness is a crucial characteristic for the survival of a complex network under attack. The capacity to measure robustness in complex…

Networking and Internet Architecture · Computer Science 2008-11-27 Ali Sydney , Caterina Scoglio , Phillip Schumm , Robert Kooij

A number of important transport networks, such as the airline and trade networks of the world, exhibit a characteristic core-periphery structure, wherein a few nodes are highly interconnected and the rest of the network frays into a tree.…

Physics and Society · Physics 2016-02-17 T. Verma , F. Russmann , N. A. M. Araújo , J. Nagler , H. J. Herrmann

Distress propagation occurs in connected networks, its rate and extent being dependent on network topology. To study this, we choose economic production networks as a paradigm. An economic network can be examined at many levels: linkages…

Physics and Society · Physics 2021-02-03 Ashish Kumar , Anindya S. Chakrabarti , Anirban Chakraborti , Tushar Nandi

The evolution of economic and innovation systems at the national scale is shaped by a complex dynamics, the footprint of which is the nested structure of the activities in which different countries are competitive. Nestedness is a…

General Economics · Economics 2023-08-15 Aurelio Patelli , Lorenzo Napolitano , Giulio Cimini , Emanuele Pugliese , Andrea Gabrielli

Economic complexity - a group of dimensionality-reduction methods that apply network science to trade data - represented a paradigm shift in development economics towards materializing the once-intangible concept of capabilities as…

General Economics · Economics 2026-04-08 Ziang Huang , Huashan Chen

Efforts to apply economic complexity to identify diversification opportunities often rely on diagrams comparing the relatedness and complexity or products, technologies, or industries. Yer, the use of these diagrams is not based on…

General Economics · Economics 2025-09-25 Viktor Stojkoski , César A. Hidalgo

This paper is a contribution to interweaving two lines of research that have progressed in separate ways: network analyses of international trade and the literature on African trade and development. Gathering empirical data on African…

General Finance · Quantitative Finance 2016-08-03 Tanya Araújo , M. Ennes Ferreira

The body of knowledge accumulated in recent years on the structure and the dynamics of complex networks has offered useful insights on the behaviour of many natural and artificial complex systems. The analysis of some of these, namely those…

Physics and Society · Physics 2008-01-16 Rodolfo Baggio

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

The dynamic network of relationships among corporations underlies cascading economic failures including the current economic crisis, and can be inferred from correlations in market value fluctuations. We analyze the time dependence of the…

Statistical Finance · Quantitative Finance 2010-11-18 Dion Harmon , Blake Stacey , Yavni Bar-Yam , Yaneer Bar-Yam

Each complex network (or class of networks) presents specific topological features which characterize its connectivity and highly influence the dynamics of processes executed on the network. The analysis, discrimination, and synthesis of…

Disordered Systems and Neural Networks · Physics 2009-09-29 Luciano da F. Costa , Francisco A. Rodrigues , Gonzalo Travieso , P. R. Villas Boas

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…

This paper discusses serious drawbacks of existing knowledge in macroeconomics and finance in explaining and predicting economic and financial phenomena. Complexity science is proposed as an alternative approach to be used in order to…

General Economics · Economics 2022-01-03 Thitithep Sitthiyot
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