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arXiv · 1301.5821

Ecosystems perspective on financial networks: diagnostic tools

Eduardo Viegas·Misako Takayasu·Wataru Miura·Koutarou Tamura·Takaaki Ohnishi·Hideki Takayasu·Henrik Jeldtoft Jensen
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Abstract

The economical world consists of a highly interconnected and interdependent network of firms. Here we develop temporal and structural network tools to analyze the state of the economy. Our analysis indicates that a strong clustering can be a warning sign. Reduction in diversity, which was an essential aspect of the dynamics surrounding the crash in 2008, is seen as a key emergent feature arising naturally from the evolutionary and adaptive dynamics inherent to the financial markets. Similarly, collusion amongst construction firms in a number of regions in Japan in the 2000s can be identified with the formation of clusters of anomalous highly connected companies.

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Eduardo Viegas, Misako Takayasu, Wataru Miura, Koutarou Tamura, Takaaki Ohnishi, Hideki Takayasu, Henrik Jeldtoft Jensen. 2013-01-24. Ecosystems perspective on financial networks: diagnostic tools. https://arxiv.org/abs/1301.5821

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