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Interdependent networks in Economics and Finance—A Physics approach

Author

Listed:
  • Smolyak, Alex
  • Levy, Orr
  • Shekhtman, Louis
  • Havlin, Shlomo

Abstract

Over the past few decades the world underwent several major economic and financial bubbles, such as the dot-com bubble of early 2000s and the global crisis following the collapse of the US housing market in 2008. Here we review the progress made in network theory as applied to economics and highlight some important insights complex networks allow into the highly interconnected economic system. Richness of phenomena that appears once we increase our complexity beyond a single network is explored and main results, as well as future research are discussed.

Suggested Citation

  • Smolyak, Alex & Levy, Orr & Shekhtman, Louis & Havlin, Shlomo, 2018. "Interdependent networks in Economics and Finance—A Physics approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 512(C), pages 612-619.
    • Handle: RePEc:eee:phsmap:v:512:y:2018:i:c:p:612-619
    DOI: 10.1016/j.physa.2018.08.089
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    References listed on IDEAS

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    1. De Bandt, Olivier & Hartmann, Philipp, 2000. "Systemic risk: A survey," Working Paper Series 35, European Central Bank.
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    Cited by:

    1. Liu, Xiao Fan & Chen, Hou-Jin & Sun, Wu-Jiu, 2021. "Adaptive topological coevolution of interdependent networks: Scientific collaboration-citation networks as an example," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 564(C).
    2. Xu, Runjie & Mi, Chuanmin & Mierzwiak, Rafał & Meng, Runyu, 2020. "Complex network construction of Internet finance risk," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    3. Tacchella, Andrea & Zaccaria, Andrea & Miccheli, Marco & Pietronero, Luciano, 2023. "Relatedness in the era of machine learning," Chaos, Solitons & Fractals, Elsevier, vol. 176(C).

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