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A number of recent contributions have put forward the topological structure of production networks as a key determinant of macro-economic dynamics. However, firm-to-firm production networks data is generally not available. Against this…

Physics and Society · Physics 2026-03-24 Mitja Devetak , Antoine Mandel

There is a large consensus on the fundamental role of firm-level supply chain networks in macroeconomics. However, data on supply chains at the fine-grained, firm level are scarce and frequently incomplete. For listed firms, some commercial…

General Economics · Economics 2023-04-04 Andrea Bacilieri , Pablo Austudillo-Estevez

The structure of the supply chain network has important implications for modelling economic systems, from growth trajectories to responses to shocks or natural disasters. However, reconstructing firm-to-firm networks from available…

Physics and Society · Physics 2024-12-23 Leonardo Niccolò Ialongo , Sylvain Bangma , Fabian Jansen , Diego Garlaschelli

In this article the problem of reconstructing the pattern of connection between agents from partial empirical data in a macro-economic model is addressed, given a set of behavioral equations. This systemic point of view puts the focus on…

General Economics · Economics 2019-01-30 Aurélien Hazan

We address a fundamental problem that is systematically encountered when modeling complex systems: the limitedness of the information available. In the case of economic and financial networks, privacy issues severely limit the information…

Physics and Society · Physics 2015-12-07 Giulio Cimini , Tiziano Squartini , Diego Garlaschelli , Andrea Gabrielli

Reconstructing patterns of interconnections from partial information is one of the most important issues in the statistical physics of complex networks. A paramount example is provided by financial networks. In fact, the spreading and…

Risk Management · Quantitative Finance 2018-07-20 Tiziano Squartini , Assaf Almog , Guido Caldarelli , Iman van Lelyveld , Diego Garlaschelli , Giulio Cimini

A key problem in network theory is how to reconfigure a graph in order to optimize a quantifiable objective. Given the ubiquity of networked systems, such work has broad practical applications in a variety of situations, ranging from drug…

Machine Learning · Computer Science 2023-01-31 Christoffel Doorman , Victor-Alexandru Darvariu , Stephen Hailes , Mirco Musolesi

Reconstructing weighted networks from partial information is necessary in many important circumstances, e.g. for a correct estimation of systemic risk. It has been shown that, in order to achieve an accurate reconstruction, it is crucial to…

Physics and Society · Physics 2017-03-07 Tiziano Squartini , Giulio Cimini , Andrea Gabrielli , Diego Garlaschelli

Network topology plays a key role in many phenomena, from the spreading of diseases to that of financial crises. Whenever the whole structure of a network is unknown, one must resort to reconstruction methods that identify the least biased…

Data Analysis, Statistics and Probability · Physics 2015-06-09 Rossana Mastrandrea , Tiziano Squartini , Giorgio Fagiolo , Diego Garlaschelli

Assessing the resilience of the economy requires accounting for its intrinsic multi-layer nature, by assessing for instance how disruptions at the firm level spread through the production network and propagate to the banking sector. Methods…

Physics and Society · Physics 2026-03-11 Soumen Majhi , Anna Mancini , Giulio Cimini

The structure of many financial networks is protected by privacy and has to be inferred from aggregate observables. Here we consider one of the most successful network reconstruction methods, producing random graphs with desired link…

Physics and Society · Physics 2024-03-21 Andrea Gabrielli , Valentina Macchiati , Diego Garlaschelli

National economies rest on networks of millions of customer-supplier relations. Some companies -- in the case of their default -- can trigger significant cascades of shock in the supply-chain network and are thus systemically risky. Up to…

General Economics · Economics 2021-10-13 Tobias Reisch , Georg Heiler , Christian Diem , Stefan Thurner

In this paper we estimate the propagation of liquidity shocks through interbank markets when the information about the underlying credit network is incomplete. We show that techniques such as Maximum Entropy currently used to reconstruct…

Risk Management · Quantitative Finance 2013-10-08 Iacopo Mastromatteo , Elia Zarinelli , Matteo Marsili

Network reconstruction is a well-developed sub-field of network science, but it has only recently been applied to production networks, where nodes are firms and edges represent customer-supplier relationships. We review the literature that…

General Economics · Economics 2024-09-20 Luca Mungo , Alexandra Brintrup , Diego Garlaschelli , François Lafond

When studying social, economic and biological systems, one has often access to only limited information about the structure of the underlying networks. An example of paramount importance is provided by financial systems: information on the…

Physics and Society · Physics 2018-10-31 Tiziano Squartini , Guido Caldarelli , Giulio Cimini , Andrea Gabrielli , Diego Garlaschelli

Network reconstruction consists in retrieving the hidden interaction structure of a system from observations. Many reconstruction algorithms have been proposed, although less research has been devoted to describe their theoretical…

We reconstruct a product-level input-output network based on firm-level import-export data of Italian firms. We show that the network has a statistically significant, yet nuanced trophic structure, which is evident at the product level but…

Physics and Society · Physics 2025-05-05 Massimiliano Fessina , Andrea Tacchella , Andrea Zaccaria

A fundamental problem in studying and modeling economic and financial systems is represented by privacy issues, which put severe limitations on the amount of accessible information. Here we introduce a novel, highly nontrivial method to…

Physics and Society · Physics 2018-12-10 Giulio Cimini , Tiziano Squartini , Andrea Gabrielli , Diego Garlaschelli

In machine learning, graph embedding algorithms seek low-dimensional representations of the input network data, thereby allowing for downstream tasks on compressed encodings. Recently, within the framework of network renormalization,…

Physics and Society · Physics 2025-08-29 Riccardo Milocco , Fabian Jansen , Diego Garlaschelli

Production networks constitute the backbone of every economic system. They are inherently fragile as several recent crises clearly highlighted. Estimating the system-wide consequences of local disruptions (systemic risk) requires detailed…

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