Related papers: Production networks and failure avalanches
Complex networks are ubiquitous: a cell, the human brain, a group of people and the Internet are all examples of interconnected many-body systems characterized by macroscopic properties that cannot be trivially deduced from those of their…
The vulnerability of an isolated network to cascades is fundamentally affected by its interactions with other networks. Motivated by failures cascading among electrical grids, we study the Bak-Tang-Wiesenfeld sandpile model on two…
Networks are structures that pervade many natural and man-made phenomena. Recent findings have characterized many networks as not random structures, but as efficent complex formations. Current research has examined complex networks as…
The progressive amplification of fluctuations in demand as the demand travels upstream the supply chains is known as the bullwhip effect. We first analytically characterize the bullwhip effect in general supply chain networks in two cases:…
We model sectoral production by cascading binary compounding processes. The sequence of processes is discovered in a self-similar hierarchical structure stylized in the economy-wide networks of production. Nested substitution elasticities…
With a steadily growing population and rapid advancements in technology, the global economy is increasing in size and complexity. This growth exacerbates global vulnerabilities and may lead to unforeseen consequences such as global…
We propose a generic system model for a special category of interdependent networks, demand-supply networks, in which the demand and the supply nodes are associated with heterogeneous loads and resources, respectively. Our model sheds a…
We study networks of coupled bistable elastic elements, recently proposed as a model for crumpled thin sheets. The networks are poised on the verge of a localized instability, and the model allows unique access to both local and global…
Inter-firm organizations, which play a driving role in the economy of a country, can be represented in the form of a customer-supplier network. Such a network exhibits a heavy-tailed degree distribution, disassortative mixing and a…
In complex networks, the failure of one or very few nodes may cause cascading failures. When this dynamical process stops in steady state, the size of the giant component formed by remaining un-failed nodes can be used to measure the…
Recent studies have found evidence of a negative association between economic complexity and inequality at the country level. Moreover, evidence suggests that sophisticated economies tend to outsource products that are less desirable (e.g.…
We propose a simple dynamical model of the formation of production networks among monopolistically competitive firms. The model subsumes the standard general equilibrium approach \`a la Arrow-Debreu but displays a wide set of potential…
The production network under examination consists of a number of workstations. Each workstation is a parallel configuration of machines performing the same kind of tasks on a given part. Parts move from one workstation to another and at…
A transformation network describes how one set of resources can be transformed into another via technological processes. Transformation networks in economics are useful because they can highlight areas for future innovations, both in terms…
When do multinationals show resilience during natural disasters? To answer this, we develop a simple model in which foreign multinationals and local firms in the host country are interacted through input-output linkages. When natural…
This paper explores a variety of strategies for understanding the formation, structure, efficiency and vulnerability of water distribution networks. Water supply systems are studied as spatially organized networks for which the practical…
We estimate the short-run effects of weather-related disasters on local economic activity and cross-border spillovers that operate through economic linkages between U.S. states. To this end, we use emergency declarations triggered by…
The relationships between diversity, productivity and scale determine much of the structure and robustness of complex biological and social systems. While arguments for the link between specialization and productivity are common, diversity…
The small-world phenomenon has been already the subject of a huge variety of papers, showing its appeareance in a variety of systems. However, some big holes still remain to be filled, as the commonly adopted mathematical formulation…
Internet is the linchpin of modern society, which the various threads of modern life weave around. But being a part of the bigger energy-guzzling industrial economy, it is vulnerable to disruption. It is widely believed that our society is…