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We provide a mechanistic foundation for economic complexity methods. In our model, an economy's ability to produce an activity depends on the joint presence of required capabilities. We analytically derive the Economic Complexity Index…

General Economics · Economics 2026-05-29 César A. Hidalgo , Viktor Stojkoski

Initially designed to predict and explain the economic trajectories of countries, cities, and regions, economic complexity has been found applicable in diverse contexts such as ecology and chess openings. The success of economic complexity…

Physics and Society · Physics 2024-05-08 Vito D. P. Servedio , Alessandro Bellina , Emanuele Calò , Giordano De Marzo

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

Recently a measure for Economic Complexity named ECI+ has been proposed by Albeaik et al. We like the ECI+ algorithm because it is mathematically identical to the Fitness algorithm, the measure for Economic Complexity we introduced in 2012.…

A recent paper by Hausmann and collaborators (1) reaches the important conclusion that Complexity-weighted diversification is the essential element to predict country growth. We like this result because Complexity-weighted diversification…

General Economics · Economics 2019-12-24 Luciano Pietronero , Andrea Gabrielli , Andrea Zaccaria

This note is a contribution to the debate about the optimal algorithm for Economic Complexity that recently appeared on ArXiv [1, 2] . The authors of [2] eventually agree that the ECI+ algorithm [1] consists just in a renaming of the…

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

The Economic Complexity Index (ECI; Hidalgo & Hausmann, 2009) measures the complexity of national economies in terms of product groups. Analogously to ECI, a Patent Complexity Index (PatCI) can be developed on the basis of a matrix of…

Economics · Quantitative Finance 2019-12-18 Inga Ivanova , Oivind Strand , Duncan Kushnir , Loet Leydesdorff

How much knowledge is there in an economy? In recent years, data on the mix of products that countries export has been used to construct measures of economic complexity that estimate the knowledge available in an economy and predict future…

Economics · Quantitative Finance 2017-07-26 Saleh Albeaik , Mary Kaltenberg , Mansour Alsaleh , Cesar A. Hidalgo

We present an iterative inverse reinforcement learning algorithm to infer optimal cost functions in continuous spaces. Based on a popular maximum entropy criteria, our approach iteratively finds a weight improvement step and proposes a…

Machine Learning · Computer Science 2025-05-14 Sarmad Mehrdad , Avadesh Meduri , Ludovic Righetti

We uncover the connection between the Fitness-Complexity algorithm, developed in the economic complexity field, and the Sinkhorn-Knopp algorithm, widely used in diverse domains ranging from computer science and mathematics to economics.…

General Economics · Economics 2024-03-21 Dario Mazzilli , Manuel Sebastian Mariani , Flaviano Morone , Aurelio Patelli

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

Recently we uploaded to the arxiv a paper entitled: Improving the Economic Complexity Index. There, we compared three metrics of the knowledge intensity of an economy, the original metric we published in 2009 (the Economic Complexity Index…

Economics · Quantitative Finance 2017-08-15 Saleh Albeaik , Mary Kaltenberg , Mansour Alsaleh , César A. Hidalgo

In this paper, a cooperative task computation framework exploits the computation resource in UEs to accomplish more tasks meanwhile minimizes the power consumption of UEs. The system cost includes the cost of UEs' power consumption and the…

Information Theory · Computer Science 2020-07-14 Yijin Pan , Cunhua Pan , Kezhi Wang , Huiling Zhu , Jiangzhou Wang

Cross Entropy (CE) has an important role in machine learning and, in particular, in neural networks. It is commonly used in neural networks as the cost between the known distribution of the label and the Softmax/Sigmoid output. In this…

Machine Learning · Computer Science 2020-07-17 Ron Shoham , Haim Permuter

Generalising the idea of the classical EM algorithm that is widely used for computing maximum likelihood estimates, we propose an EM-Control (EM-C) algorithm for solving multi-period finite time horizon stochastic control problems. The new…

Economics · Quantitative Finance 2016-11-08 Steven Kou , Xianhua Peng , Xingbo Xu

Economic complexity reflects the amount of knowledge that is embedded in the productive structure of an economy. It resides on the premise of hidden capabilities - fundamental endowments underlying the productive structure. In general,…

Classical optimization is a cornerstone of the success of variational quantum algorithms, which often require determining the derivatives of the cost function relative to variational parameters. The computation of the cost function and its…

Quantum Physics · Physics 2025-07-15 Muhammad Umer , Eleftherios Mastorakis , Dimitris G. Angelakis

When neural networks (NeuralNets) are implemented in hardware, their weights need to be stored in memory devices. As noise accumulates in the stored weights, the NeuralNet's performance will degrade. This paper studies how to use error…

Information Theory · Computer Science 2020-01-14 Kunping Huang , Paul Siegel , Anxiao , Jiang

Economic Model Predictive Control (EMPC) has recently become popular because of its ability to control constrained nonlinear systems while explicitly optimizing a prescribed performance criterion. Large performance gains have been reported…

Systems and Control · Electrical Eng. & Systems 2020-10-30 Mario Zanon
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