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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

A model for economic behavior, under heterogeneous spatial economic conditions is developed. The role of selection pressure in a Bak-Sneppen-like dynamics with entity diffusion on a lattice is studied by Monte-Carlo simulation taking into…

Physics and Society · Physics 2015-06-26 Marcel Ausloos , Paulette Clippe , Andrzej Pekalski

We develop an analytically tractable model featuring heterogeneous workers and firms, where labor markets clear through a one-to-many sorting mechanism. Firms determine both the number and composition of their employees, shaping (1) the…

Theoretical Economics · Economics 2026-03-11 Paweł Gola , Haozhou Tang

Diversified economies are critical for cities to sustain their growth and development, but they are also costly because diversification often requires expanding a city's capability base. We analyze how cities manage this trade-off by…

Physics and Society · Physics 2025-01-20 Simone Daniotti , Matte Hartog , Frank Neffke

Intricate interactions among firms, institutions, and spatial structures shape urban economic systems. In this study, we propose a framework based on three structural dimensions -- abundance, diversity, and longevity (ADL) of economic units…

Physics and Society · Physics 2026-01-28 Marco A. Rosas Pulido , Roberto Murcio , Omar R. Vázquez , Carlos Gershenson

Classic economic science is reaching the limits of its explanatory powers. Complexity science uses an increasingly larger set of different methods to analyze physical, biological, cultural, social, and economic factors, providing a broader…

General Finance · Quantitative Finance 2017-07-11 Klaus Jaffe

In many complex systems, the dynamical evolution of the different components can result in adaptation of the connections between them. We consider the problem of how a fully connected network of discrete-state dynamical elements which can…

Disordered Systems and Neural Networks · Physics 2015-06-16 Rajeev Singh , Subinay Dasgupta , Sitabhra Sinha

All economies require physical resource consumption to grow and maintain their structure. The modern economy is additionally characterized by private debt. The Human and Resources with MONEY (HARMONEY) economic growth model links these…

Theoretical Economics · Economics 2021-06-07 Carey W. King

This study analyses, through cross-section estimation methods, the influence of spatial effects and human capital in the conditional productivity convergence (product per worker) in the economic sectors of NUTs III of mainland Portugal…

General Finance · Quantitative Finance 2011-10-26 Vitor Joao Pereira Domingues Martinho

An economy-wide production network, manifested through monetary input-output coefficients, inherently destabilizes during the general equilibrium propagation of sectoral productivity shocks when substitution elasticities are non-neutral.…

Theoretical Economics · Economics 2025-12-29 Satoshi Nakano , Kazuhiko Nishimura

In economic systems, the mix of products that countries make or export has been shown to be a strong leading indicator of economic growth. Hence, methods to characterize and predict the structure of the network connecting countries to the…

Physics and Society · Physics 2015-06-04 Sebastian Bustos , Charles Gomez , Ricardo Hausmann , Cesar A. Hidalgo

This handbook chapter provides an essential introduction to the field of spatial econometrics, offering a comprehensive overview of techniques and methodologies for analysing spatial data in the social sciences. Spatial econometrics…

Econometrics · Economics 2025-03-20 Tobias Rüttenauer

Science is essential to innovation and economic prosperity. Although studies have shown that national scientific development is affected by geographic, historic, and economic factors, it remains unclear whether there are universal…

Social and Information Networks · Computer Science 2024-05-27 Lili Miao , Dakota Murray , Woo-Sung Jung , Vincent Larivière , Cassidy R. Sugimoto , Yong-Yeol Ahn

We propose a stylized model of a complex economy to explore the economic tradeoffs imposed by the so called "green transition" -- the shift towards more sustainable production paradigms -- using tools from the Statistical Mechanics of…

Physics and Society · Physics 2025-08-06 Filippo Marcuccini , Giacomo Livan

Complex networks are commonly used to explore human behavior. However, previous studies largely overlooked the geographical and economic factors embedded in collective attention. To address this, we construct attention networks from…

Physics and Society · Physics 2025-08-13 Ke-ke Shang , Jiangli Zhu , Junfan Yi , Liwen Zhang , Junjie Yang , Ge Guo , Zixuan Jin , Michael Small

The geographical pattern of human dialects is a result of history. Here, we formulate a simple spatial model of language change which shows that the final result of this historical evolution may, to some extent, be predictable. The model…

Physics and Society · Physics 2017-07-26 James Burridge

This paper studies the statistical properties of the web of import-export relationships among world countries using a weighted-network approach. We analyze how the distributions of the most important network statistics measuring…

Physics and Society · Physics 2009-11-13 Giorgio Fagiolo , Javier Reyes , Stefano Schiavo

Cities and metropolitan areas are major drivers of creativity and innovation in all possible sectors: scientific, technological, social, artistic, etc. The critical concentration and proximity of diverse mindsets and opportunities,…

Physics and Society · Physics 2023-07-07 Matteo Straccamore , Vittorio Loreto , Pietro Gravino

We develop a model for the evolution of economic entities within a geographical type of framework. On a square symmetry lattice made of three (economic) regions, firms, described by a scalar fitness, are allowed to move, adapt, merge or…

Statistical Mechanics · Physics 2009-11-10 Marcel Ausloos , Paulette Clippe , Andrzej Pekalski

Challenges due to the rapid urbanization of the world -- especially in emerging countries -- range from an increasing dependence on energy, to air pollution, socio-spatial inequalities, environmental and sustainability issues. Modelling the…

Physics and Society · Physics 2019-05-07 Marc Barthelemy
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