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on Network Economics |
| By: | Michael Greinecker; Karolina Vocke |
| Abstract: | We study stability notions for networked many-to-many matching markets with individually insignificant agents in distributional form. Outcomes are formulated as joint distributions over characteristics of agents and contract choices. Characteristics can lie in an arbitrary Polish space. We provide a mechanical method for transferring existence results for finite matching models to large matching models for many stability notions. In particular, we show that tree-stable and pairwise-stable outcomes exist. |
| Keywords: | stability notion, matching markets, matching models |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:inn:wpaper:2026-02 |
| By: | Ms. Laura Valderrama; Mr. Richard Varghese |
| Abstract: | This paper applies network analysis to examine the impact of non-bank financial institutions (NBFIs) and financial market stress on contagion risk within the interbank network. Using network-based simulations on euro area banks’ supervisory data, we find that banks’ strong capital and liquidity buffers significantly reduce contagion through interbank exposures: base-line scenarios show only modest capital losses and no cascading defaults. In contrast, stress originating from NBFIs under heightened market volatility markedly amplifies systemic risk. These findings highlight NBFIs and market volatility as key amplifiers of financial stress in the euro area. Our findings call for integrating contagion models into system-wide stress testing and designing macroprudential policies that encompass the entire financial ecosystem. Such policies should account for amplification risks from banks’ NBFI exposures when calibrating buffers and identifying systemic institutions. |
| Keywords: | Systemic Risk; Network Analysis; Interconnectedness; NBFIs; Market Risk |
| Date: | 2026–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2026/033 |
| By: | Giorgia Samp\`o; Saverio Giallorenzo; Zelda Alice Franceschi |
| Abstract: | Why do some community-cooperation projects catalyse participation through durable, resilient collaboration networks while others result in negligible impact and leave the local social fabric unchanged? We argue outcomes hinge on participation architecture: simple, visible routines -- onboarding help, templated tasks, lightweight contribution/benefit tracking -- that create easy ``entry portals'' and route work across clusters without heavy hierarchy. We introduce Project Intervention Response Analysis (PIRA), a mixed anthropological-network-analysis framework that compares observed community networks with counterfactual networks absent from project-induced ties. PIRA also adds a new egocentric metric to detect ``architectural alters'' -- latent facilitators and boundary spanners. We begin validating PIRA in a three-month field study in Pomerini, Tanzania, where NGOs coordinated citizens, associations, and specialists. Findings indicate that sociotechnical participation architectures -- not charismatic hubs -- underwrite durable coordination. PIRA offers a reusable method to link organizational design mechanisms to formal network signatures. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2602.20009 |
| By: | Laura Alfaro; Paola Conconi; Fariha Kamal; Zachary Kroff |
| Abstract: | Traditional theories of firm boundaries predict trade between vertically related units of the same firm. Using novel data that combine a comprehensive mapping of U.S. multinationals’ production networks with their customs filings, we uncover a strong positive relationship between input-output linkages and trade between parents and their affiliates. We also find that intrafirm trade is prevalent, particularly between geographically proximate units: three-quarters of affiliates in North America trade with their U.S. parent. These results overturn prior findings based on survey data on intrafirm trade. Administrative intrafirm records enable correcting measurement errors in survey data, reconciling traditional theories with empirical evidence. |
| Keywords: | multinational enterprises, intrafirm trade, input-output linkages |
| JEL: | F14 F23 D23 L20 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12394 |
| By: | Julia Manso |
| Abstract: | Sentiment towards the Chinese real estate sector has deteriorated following the introduction of financing constraints in 2020 with the ''three red lines." Forcing developers to restructure their debt, the policy triggered a cascade of financing troubles, defaults, and reduced housing demand, ultimately culminating in a prolonged real estate crisis. This paper utilizes a network approach in line with Demirer et al. (2018) and Diebold and Yilmaz (2014) to measure daily time-varying connectedness in the stock return volatilities of major Chinese real estate developers throughout the crisis. Focusing on spillover between companies as reflected by market perception, this paper examines how connectedness evolves over time across firms with different regional exposures and state-ownership statuses, filling a gap in the literature to elucidate where property demand and real estate firm trustworthiness have deteriorated most. An event-study analysis of four key moments of the crisis outlines distinct phases of market sentiment: with the introduction of the three red lines, connectedness primarily reflects shared exposure and a uniform shock to the market. Then, the early unrest surrounding Evergrande exposes strong regional differentiation, with firms concentrated in less developed regions receiving significant spillover. By one year into the crisis, previously stable regions receive higher levels of spillover, and there is evidence of a substitution effect towards private developers. Two years into the crisis, the market has much less homogeneity in effects across regions and state-ownership status: major shocks induce minimal network changes, reflecting how investors have already priced in their beliefs. This paper also offers one of the most extensive timelines of the Chinese real estate crisis to date, and a new R package, GephiForR, was created for the network visualization in this paper. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2602.19740 |
| By: | Imen Bouhlel (ESSEC Business School, France); Nathalie Lazaric (Université Côte d'Azur, CNRS, GREDEG, France); Paolo Zeppini (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | Climate change calls for a transition to a more sustainable economy. Incumbent technologies pose a barrier to the diffusion of innovative solutions. Furthermore, the benefits of novel sustainable practices, such as recycling, can be offset by the adoption of obsolete polluting technologies. Understanding the mechanism of competitive diffusion is crucial for designing policies that favour promising but underdeveloped technologies. We propose an agent-based model where adoption occurs in a social network by word-of-mouth, in a percolation framework. We study how learning affects competitive diffusion and find that small differences in technologies' costs lead to large differences in their diffusion sizes. In addition, increasing the number of early adopters can back-fire and hinder overall diffusion. We calibrate the model to data on plastic waste recycling, where alternative solutions such as mechanical and physical/chemical technologies compete for a new market. Green public procurement, tax exemption and R&D boost are implemented for triggering sustainable transitions. The direction of technical change is discussed, as well as the role of policymakers in creating a shift in the plastic value chain. |
| Keywords: | Agent-based modeling; Learning curves; Mission-oriented policies; Networks; Percolation |
| JEL: | O33 Q55 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2026-04 |