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Economic growth is often associated with diversification of economic activities. Making a product in a country is dependent on having, and acquiring, the capabilities needed to make the product, making the process path-dependent. We derive…

Physics and Society · Physics 2018-09-05 Neave O'Clery , Muhammed A. Yildirim , Ricardo Hausmann

The way the topological structure goes from a decoupled state into a coupled one in multiplex networks has been widely studied by means of analytical and numerical studies, involving models of artificial networks. In general, these…

Physics and Society · Physics 2018-08-15 Johann H. Martínez , Stefano Boccaletti , Vladimir V. Makarov , Javier M. Buldú

In the study of economic networks, econometric approaches interpret the traditional Gravity Model specification as the expected link weight coming from a probability distribution whose functional form can be chosen arbitrarily, while…

Physics and Society · Physics 2024-05-15 Marzio Di Vece , Diego Garlaschelli , Tiziano Squartini

We demonstrate that future market correlation structure can be predicted with high out-of-sample accuracy using a multiplex network approach that combines information from social media and financial data. Market structure is measured by…

Statistical Finance · Quantitative Finance 2019-09-04 Thársis T. P. Souza , Tomaso Aste

Achieving the United Nations Sustainable Development Goals (SDGs) requires an understanding of the complex interlinkages that exist among their underlying indicators. While most existing research examines these interconnections at the goal…

Dynamical Systems · Mathematics 2026-02-03 Gaurav Kottari , Qazi J. Azhad , Niteesh Sahni

A country's mix of products predicts its subsequent pattern of diversification and economic growth. But does this product mix also predict income inequality? Here we combine methods from econometrics, network science, and economic…

Economics · Quantitative Finance 2017-01-31 D. Hartmann , M. R. Guevara , C. Jara-Figueroa , M. Aristaran , C. A. Hidalgo

This paper develops a multilayer network approach for exploring the evolution of scientific disciplines, using the case of economics before and after the 2008 global financial crisis as a large-scale empirical testing ground. The units of…

General Economics · Economics 2026-04-28 Alberto Baccini , Lucio Barabesi , Carlo Debernardi

Several approaches to cognition and intelligence research rely on statistics-based models testing, namely factor analysis. In the present work we exploit the emerging dynamical systems perspective putting the focus on the role of the…

Physics and Society · Physics 2018-03-15 Gemma Rosell-Tarragó , Emanuele Cozzo , Albert Díaz-Guilera

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

Multilayer networks represent systems in which there are several topological levels each one representing one kind of interaction or interdependency between the systems' elements. These networks have attracted a lot of attention recently…

Physics and Society · Physics 2015-04-22 Emanuele Cozzo , Guilherme Ferraz de Arruda , Francisco A. Rodrigues , Yamir Moreno

We propose a dynamic network model where two mechanisms control the probability of a link between two nodes: (i) the existence or absence of this link in the past, and (ii) node-specific latent variables (dynamic fitnesses) describing the…

Social and Information Networks · Computer Science 2018-01-03 Piero Mazzarisi , Paolo Barucca , Fabrizio Lillo , Daniele Tantari

This study explores the dynamic relationship between corruption and economic growth through an approach based on a system of stochastic equations. In the context of globalization and economic interdependencies, corruption not only affects…

Several real-world systems can be represented as multi-layer complex networks, i.e. in terms of a superposition of various graphs, each related to a different mode of connection between nodes. Hence, the definition of proper mathematical…

Physics and Society · Physics 2016-10-31 Valerio Gemmetto , Diego Garlaschelli

We review the recent approach of correlation based networks of financial equities. We investigate portfolio of stocks at different time horizons, financial indices and volatility time series and we show that meaningful economic information…

Statistical Mechanics · Physics 2009-11-10 G. Bonanno , G. Caldarelli , F. Lillo , S. Micciche` , N. Vandewalle , R. N. Mantegna

It is commonly believed that patterns of social ties affect individuals' economic status. Here, we translate this concept into an operational definition at the network level, which allows us to infer the economic wellbeing of individuals…

Physics and Society · Physics 2017-05-24 Shaojun Luo , Flaviano Morone , Carlos Sarraute , Matías Travizano , Hernán A. Makse

We propose a model that forecasts market correlation structure from link- and node-based financial network features using machine learning. For such, market structure is modeled as a dynamic asset network by quantifying time-dependent…

Computational Finance · Quantitative Finance 2021-10-25 Douglas Castilho , Tharsis T. P. Souza , Soong Moon Kang , João Gama , André C. P. L. F. de Carvalho

The time proximity of trades across stocks reveals interesting topological structures of the equity market in the United States. In this article, we investigate how such concurrent cross-stock trading behaviors, which we denote as…

Trading and Market Microstructure · Quantitative Finance 2024-05-14 Yutong Lu , Gesine Reinert , Mihai Cucuringu

The latest financial crisis has painfully revealed the dangers arising from a globally interconnected financial system. Conventional approaches based on the notion of the existence of equilibrium and those which rely on statistical…

Trading and Market Microstructure · Quantitative Finance 2019-12-12 V. Sasidevan , Nils Bertschinger

One major hurdle in the road toward a low carbon economy is the present entanglement of developed economies with oil. This tight relationship is mirrored in the correlation between most of economic indicators with oil price. This paper…

Physics and Society · Physics 2015-09-29 Franco Ruzzenenti , Francesco Picciolo , Andreas Papandreou

The relationship of network structure and dynamics is one of most extensively investigated problems in the theory of complex systems of the last years. Understanding this relationship is of relevance to a range of disciplines -- from…