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We demonstrate using multi-layered networks, the existence of an empirical linkage between the dynamics of the financial network constructed from the market indices and the macroeconomic networks constructed from macroeconomic variables…

General Economics · Economics 2019-03-18 Kiran Sharma , Anindya S. Chakrabarti , Anirban Chakraborti

The paper argues that attracting more economists and adopting a more-precise definition of dynamic complexity might help econophysics acquire more attention in the economics community and bring new lymph to economic research. It may be…

General Finance · Quantitative Finance 2020-02-03 Paolo Magrassi

A good process model is expected not only to reflect the behavior of the process, but also to be as easy to read and understand as possible. Because preferences vary across different applications, numerous measures provide ways to reflect…

Formal Languages and Automata Theory · Computer Science 2024-08-23 Patrizia Schalk , Adam Burke , Robert Lorenz

In recent decades, trade between nations has constituted an important component of global Gross Domestic Product (GDP), with official estimates showing that it likely accounted for a quarter of total global production. While evidence of…

General Economics · Economics 2022-11-24 Mayank Kejriwal , Yuesheng Luo

Complexity is a multi-faceted phenomenon, involving a variety of features including disorder, nonlinearity, and self-organisation. We use a recently developed rigorous framework for complexity to understand measures of complexity. We…

Adaptation and Self-Organizing Systems · Physics 2020-09-22 Karoline Wiesner , James Ladyman

Complex systems are found in most branches of science. It is still argued how to best quantify their complexity and to what end. One prominent measure of complexity (the statistical complexity) has an operational meaning in terms of the…

Data Analysis, Statistics and Probability · Physics 2011-10-24 Karoline Wiesner , Mile Gu , Elisabeth Rieper , Vlatko Vedral

Is there a general economic pathway recapitulated by individual cities over and over? Identifying such evolution structure, if any, would inform models for the assessment, maintenance, and forecasting of urban sustainability and economic…

Physics and Society · Physics 2020-08-27 Inho Hong , Morgan R. Frank , Iyad Rahwan , Woo-Sung Jung , Hyejin Youn

In this paper, we survey recent econometric contributions to measure the relationship between economic activity and climate change. Due to the critical relevance of these effects for the well-being of future generations, there is an…

Econometrics · Economics 2022-06-16 Aránzazu de Juan , Pilar Poncela , Vladimir Rodríguez-Caballero , Esther Ruiz

Structural transformation, the shift from agrarian economies to more diversified industrial and service-based systems, is a key driver of economic development. However, in low- and middle-income countries (LMICs), data scarcity and…

Applications · Statistics 2025-10-02 Ronald Katende

Contrary to conventional economic growth theory, which reduces a country's output to one aggregate variable (GDP), product diversity is central to economic development, as recent 'economic complexity' research suggests. A country's product…

Statistical Finance · Quantitative Finance 2023-05-09 Sabiou Inoua

We present a conceptual framework that unifies a variety of evaluation metrics for different structured prediction tasks (e.g. event and relation extraction, syntactic and semantic parsing). Our framework requires representing the outputs…

Computation and Language · Computer Science 2023-10-24 Yunmo Chen , William Gantt , Tongfei Chen , Aaron Steven White , Benjamin Van Durme

Estimating the capabilities, or inputs of production, that drive and constrain the economic development of urban areas has remained a challenging goal. We posit that capabilities are instantiated in the complexity and sophistication of…

Physics and Society · Physics 2021-09-17 Andres Gomez-Lievano , Oscar Patterson-Lomba

At present, there is a great deal of confusion regarding complexity and its measures (reviews on complexity measures are found in, e.g. Lloyd, 2001 and Shalizi, 2006 and more references therein). Moreover, there is also confusion regarding…

Biological Physics · Physics 2012-05-01 Attila Grandpierre

Evaluating the economies of countries and their relations with products in the global market is a central problem in economics, with far-reaching implications to our theoretical understanding of the international trade as well as to…

Economics · Quantitative Finance 2015-12-09 Manuel Sebastian Mariani , Alexandre Vidmer , Matus Medo , Yi-Cheng Zhang

Uncovering the structure of socioeconomic systems and timely estimation of socioeconomic status are significant for economic development. The understanding of socioeconomic processes provides foundations to quantify global economic…

Physics and Society · Physics 2019-07-02 Jian Gao , Yi-Cheng Zhang , Tao Zhou

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

Many socio-economic systems require positive economic growth rates to function properly. Given uncertainty about future growth rates and increasing evidence that economic growth is a driver of social and environmental crises, these growth…

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…

Two network measures known as the Economic Complexity Index (ECI) and Product Complexity Index (PCI) have provided important insights into patterns of economic development. We show that the ECI and PCI are equivalent to a spectral…

Economics · Quantitative Finance 2021-10-05 Penny Mealy , J. Doyne Farmer , Alexander Teytelboym

As the current thermo-industrial civilization expands, its technological and societal complexities increase. We suggest that physical power, economic activity and societal complexity are linked. A simple, intuitive model based on Systems…

Physics and Society · Physics 2026-05-11 Jerome Lewandowski