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on Network Economics |
| By: | Serafica, Ramonette B.; Tabuga, Aubrey D.; Baino, Madeleine Louise S. |
| Abstract: | This paper aims to explore ownership networks of publicly listed financial institutions in the Philippines. It covers the second phase of a research project on financial networks and builds on the analyses conducted in Tabuga et al. (2024), which aims to provide an understanding of the underlying network structure that may influence financial sector development and stability in the Philippines. The current paper further expounds on the connections examined in the first paper—focusing on the extent of financial institutions’ networks in other sectors and assessing the roles of connections within the network. In this report, the network illustrating ownership and investment relationships has been expanded to include entities with relatively smaller shares, emphasizing the possible importance of weaker ties. By identifying the sectors and subsectors of nodes in the network, this paper aims to provide a deeper understanding of the extent of the network of the country’s publicly listed financial institutions. Furthermore, it seeks to draw insights that may be valuable for policy formulation and financial supervision/regulation. Comments on this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | ownership networks;publicly listed financial institutions;financial networks;network structure;investment relationships;inter-sector connections;network analysis |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2024-46 |
| By: | Boeing, Geoff (Northeastern University); Ha, Jaehyun |
| Abstract: | Street networks allow people and goods to move through cities, but they are vulnerable to disasters like floods, earthquakes, and terrorist attacks. Well-planned network design can make a city more resilient and robust to such disruptions, but we still know little about worldwide patterns of vulnerability, or worldwide empirical relationships between specific design characteristics and resilience. This study quantifies and measures the vulnerability of the street networks of every urban area in the world then models the relationships between vulnerability and street network design characteristics. To do so, we simulate over 2.4 billion trips across more than 8, 000 urban areas in 178 countries, while also simulating network disruption events representing floods, earthquakes, and targeted attacks. We find that disrupting high-centrality nodes severely impacts network function. All else equal, networks with higher connectivity, fewer chokepoints, or less circuity are less vulnerable to disruption's impacts. This study thus contributes a new global understanding of network design and vulnerability to the literature. We argue that these design characteristics offer high leverage points for street network resilience and robustness that planners should emphasize when designing or retrofitting urban networks. |
| Date: | 2024–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:tk93y_v1 |
| By: | Mark Paddrik; Stathis Tompaidis |
| Abstract: | In OTC markets, dealers facilitate trade by providing liquidity. This paper presents a model and empirical results that link dealers’ relationships to liquidity. |
| Keywords: | credit default swaps, dealers, intermediation costs, liquidity, OTC trading networks |
| Date: | 2024–01–24 |
| URL: | https://d.repec.org/n?u=RePEc:ofr:ofrblg:24-01 |
| By: | Sharmin Sazedj; José Tavares |
| Abstract: | This paper assesses the relevance of professional networks for the gender pay gap amongst top managers. Using data on the universe of firms in Portugal, we show that female top managersearn 25% less than their male counterparts, and that 20% of this gap is due to differences in networks. Using Gelbach’s decomposition, we find that the network effect can be ascribed to firm sorting, i.e. well-connected managers tend to be associated to higher paying firms. By examining the gender composition and the type of connections of top manager networks, we find that same gender connections are important. We conclude that connections between females can play an important role in the existing corporate framework where males areoverrepresented, and thus policies furthering female representation in leadership positions can have positive spillover effects for other women. |
| JEL: | J16 J30 J24 L14 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ptu:wpaper:w202423 |
| By: | Feiter, Tim Johannes |
| Abstract: | In times of digitalization and the democratization of information, individuals face information overload, misinformation, and missing orientation. Considering the corporate word, the question occurs, how individuals can create value through creative behavior considering the information flood. Therefore, this dissertation investigates the processes behind knowledge generation and the role of social interactions in fostering individual creativity, with a specific focus on innovation within organizations. Drawing on a multidisciplinary approach, the research explores three critical perspectives: network structures, the dynamic process of knowledge exchange, and the application of natural language processing (NLP) for identifying creative contributions. The first research question focuses on how knowledge and social network structures jointly enable future learning and innovation. The findings highlight that knowledge network saturation plays a significant role in creative behavior, particularly in determining the balance between explorative and exploitative search activities. This interaction between knowledge and social networks, where both can compensate for each other, offers a nuanced understanding of how organizations can leverage social dynamics and knowledge structures to stimulate creativity. The second research question examines the impact of knowledge exchange on innovative behavior throughout the idea journey. Through an analysis of online communities, this research demonstrates that changes in individual interests over time are critical to fostering creativity. The dissertation identifies key temporal patterns that enhance the likelihood of creative outcomes, emphasizing the importance of managing both knowledge diversity and depth during the ideation process. The third research question explores the potential of advanced NLP techniques to automatically identify creative behavior from textual data. The research proposes a transfer learning methodology that demonstrates superior accuracy compared to traditional methods, offering a scalable solution for organizations seeking to evaluate large volumes of idea descriptions. This novel approach opens new avenues for utilizing artificial intelligence in innovation management. Overall, the dissertation contributes to innovation literature by providing theoretical and practical insights into knowledge generation processes, social networks, and AI-driven creativity assessment. These findings offer actionable strategies for organizations to cultivate environments that support creative individuals, enabling them to navigate the complexities of knowledge recombination and social interaction for successful innovation in times of information overload. |
| Date: | 2025–02–26 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153302 |
| By: | González-Casado, Miguel A.; Rey, Alejandro Cruzado; Corrotea, Miroslav Pulgar; McCarty, Christopher; Molina, Jose Luis; Sánchez, Angel |
| Abstract: | This article presents an analysis of the impact of the number of alters elicited in an ego network on the structural properties of those networks. There continues to be debate about the pros and cons of eliciting a fixed number of alters for each respondent versus allowing the respondent to list as many or few alters as they would like. This article explores a random assignment of respondents to three treatment groups – 1) a fixed number of alters set at 30, 2) a variable number of alters up to 45, and 3) a variable number of alters up to 45 with a 20 alter minimum. The results indicate that, from a non-structural perspective, all levels of emotional proximity, interaction contexts, genders, and ages are consistently sampled across the three name generators. At the structural level, the behavior of individual metrics is also largely similar. However, the most significant differences arise in the collective behavior of structural metrics—specifically, in their correlation structure, the amount of redundant information each variable provides, and the diversity and interpretability of the observed structural variability. When a name generator constrains network size, it reduces the sparsity of the correlation matrix, effectively decreasing the number of independent global variables needed to describe network structure and making these global variables less interpretable. In other words, networks constructed with a name generator that limits size tend to be more similar to each other, exhibiting less structural diversity and yielding differences that are harder to interpret. However, we discuss how these differences may simply be mathematical artifacts, without necessarily implying a clear advantage in choosing one name generator over another. |
| Date: | 2025–02–15 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:kumcj_v1 |
| By: | Beck, Anne Helene; Lim, Sunghun; Taglioni, Daria |
| Abstract: | This paper explores the evolution and resilience of global value chains (GVCs) in the agrifood sector, which intensified since the 1994 Uruguay Round Agreement. Using unique data from the FactSet database, along with Fortune 500 lists, the comprehensive analysis of approximately 17, 500 agribusiness companies worldwide examines more than 150, 000 supplier and customer connections from 2014 to 2022. The findings reveal that large corporations, acting as central nodes, have increased their network centrality in global value chains, particularly through geographic diversification and a concentrated supply strategy. The study also indicates that there is a correlation between the complexity and depth of firm-to-firm linkages and increased resilience, suggesting that firms with greater connectivity are less likely to exit the industry. The analysis not only contributes new insights into the structure and dynamics of agribusiness networks, but also highlights the role of firm linkages in navigating recent disruptive global events, such as the United States-China Trade War, the COVID-19 pandemic, extreme weather episodes, and geopolitical tensions. |
| Date: | 2024–05–16 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10774 |
| By: | Ashtari Tafti, Elena; Distefano, Mimosa; Surovtseva, Tetyana |
| Abstract: | We use Italian Social Security data to study how the gender composition of a worker's professional network influences their career development. By exploiting variation within firms, occupations, and labor market entry cohorts, we find that young women starting their careers alongside a higher share of female peers experience lower wage growth, fewer promotions and increased transitions into non-employment. In contrast, male workers appear unaffected. The analysis reveals that these gender-specific effects are largely driven by structural differences in the networks of men and women. Networks predominantly composed of women appear to be less effective in the labor market. Women, who experience higher attrition and lower promotion rates, have fewer connections to employment opportunities, and their connections tend to be less valuable. When accounting for these differences, we find that connections among female peers offer a crucial safety net during adverse employment shocks. Our findings highlight the critical role of early-career peers and provide a new perspective on the barriers to career advancement for women |
| Keywords: | gender peer effects; networks; labor market entrants; career progression |
| JEL: | J16 J1 |
| Date: | 2024–06–14 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126779 |
| By: | Boeing, Geoff (Northeastern University); Pilgram, Clemens; Lu, Yougeng |
| Abstract: | This study estimates the relationships between street network characteristics and transport-sector CO2 emissions across every urban area in the world and investigates whether they are the same across development levels and urban design paradigms. The prior literature has estimated relationships between street network design and transport emissions---including greenhouse gases implicated in climate change---primarily through case studies focusing on certain world regions or relatively small samples of cities, complicating generalizability and applicability for evidence-informed practice. Our worldwide study finds that straighter, more-connected, and less-overbuilt street networks are associated with lower transport emissions, all else equal. Importantly, these relationships vary across development levels and design paradigms---yet most prior literature reports findings from urban areas that are outliers by global standards. Planners need a better empirical base for evidence-informed practice in under-studied regions, particularly the rapidly urbanizing Global South. |
| Date: | 2024–01–02 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:r32vj_v1 |
| By: | de Boer, Jantke |
| Abstract: | The position of countries in a network of external portfolio investments provides a novel macroeconomic characteristic to explain violations of uncovered interest rate parity. I derive a network centrality measure, where central countries are highly integrated with key suppliers of tradeable financial assets. Currency risk premia decrease as network centrality increases. Asset pricing tests confirm that the centrality risk factor is priced in the cross-section. Further, negative global shocks appreciate central countries' currencies and depreciate peripheral ones. In a consumption-based capital asset pricing model, central countries experience lower consumption growth in high marginal utility states, leading to currency appreciation. |
| Keywords: | Exchange rates, currency risk premia, external portfolios, financial network, asset pricing |
| JEL: | F31 E43 E44 G12 G15 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:312406 |
| By: | Gómez, José M. |
| Abstract: | This paper develops a comprehensive Python framework for analyzing the convergence of sectoral surplus value rates through multiple approaches to the Law of Large Numbers (LLN), specifically addressing dependent-variable scenarios. We implement and compare three distinct methodologies: triangular arrays, weighted sums with dependent variables, and mixingale processes, each offering unique insights into different aspects of convergence behavior. Our framework incorporates flexible convergence thresholds, detailed difference analysis, and sophisticated Excel reporting capabilities. The results reveal a complex pattern of sectoral convergence. While traditional approaches (triangular arrays and mixingale processes) indicate persistent sectoral differences, the weighted sums method, which explicitly accounts for inter-sectoral correlations, shows evidence of convergence at certain thresholds. This divergence in results suggests the existence of what we term “network uniformity” - a phenomenon where sectors, while maintaining individual characteristics, exhibit systematic convergence patterns when their interconnections are properly weighted. Our findings challenge conventional interpretations of sectoral rate uniformity, suggesting that modern economies might exhibit more sophisticated forms of convergence than traditionally theorized. The framework demonstrates that understanding sectoral relationships, rather than individual sector behaviors, is crucial for accurate economic analysis. These results have significant implications for economic policy and forecasting, particularly in highly interconnected modern economies. Additionally, the study provides methodological insights for analyzing dependent-variable scenarios in economic research, offering a robust computational approach for testing economic theories of sectoral behavior. |
| Date: | 2025–02–21 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:k435g_v2 |