The Empirical Analysis of Weighted Directed Networks

72 Pages·2007·1.36 MB·English

Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
The Empirical Analysis
of Weighted Directed Networks:
An Application to the World Trade Web
G. Fagiolo 1 J. Reyes 2 S. Schiavo 3
[email protected]
https://mail.sssup.it/∼fagiolo
1Sant’AnnaSchoolofAdvancedStudies,Pisa,Italy
2UniversityofArkansas,USA
3UniversityofTrento,Italy
Net Workshop, 12-13 April 2007, Milan (Italy)
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
My Homepage
https://mail.sssup.it/∼fagiolo/welcome.html
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
Motivations and Goals
Illustrating some statistical tools for the analysis of
empirically-observed networks
Threesimplebutimportantmethodologicalpoints
Leadingexample: networkoftradeamongWorldcountries
Methodological points
1 Ifappropriate,empiricalanalysesshouldbecarriedoutin
theframeworkofweightednetworks
2 Often,butnotalways,directednetworkanalysesshouldbe
preferredtoundirectones
3 Theempiricalanalysisofweighted,directednetworks
requiresnewstatisticaltools
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
Motivations and Goals
Illustrating some statistical tools for the analysis of
empirically-observed networks
Threesimplebutimportantmethodologicalpoints
Leadingexample: networkoftradeamongWorldcountries
Methodological points
1 Ifappropriate,empiricalanalysesshouldbecarriedoutin
theframeworkofweightednetworks
2 Often,butnotalways,directednetworkanalysesshouldbe
preferredtoundirectones
3 Theempiricalanalysisofweighted,directednetworks
requiresnewstatisticaltools
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
Background Papers
Fagiolo, G. (2006a), “Directed or Undirected? A New Index
to Check for Directionality of Relations in Socio-Economic
Networks", Economics Bulletin, 3: 1-12.
Fagiolo, G. (2006b), “Clustering in Complex Directed
Networks”, Working Paper, arXiv:physics/0612169v2.
Fagiolo, G., Reyes, J. and Schiavo, S. (2007), “The
Evolution of the World Trade Web: A Weighted Network
Approach”, LEM Working Paper, Sant’Anna School of
Advanced Studies, forthcoming.
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
From Social to Hard Sciences...
Networks of interpersonal relations
Oldideainsociology: “relevantothers”(Miller,1963)
Explainingpatternsofinteractionsamongpeopleofgroups
Friendship(Rapoport&Horvath,1961;Milgram,1967)
Marriage(Padgett&Ansell,1993)
Job-marketinteractions(Granovetter,1974)
Statistical analysis of network topology
Albert&Barabási(2002),Newman(2003),Pastor-Satorras
&Vespignani(2004),Dorogovtsev&Mendes(2003),...
Propertiesofreal-worldtechnological,biologicaland
informationnetworks
WWWandtheInternet,peer-to-peernetworks,powergrids,train
routes,airlineconnections,electroniccircuits,metabolism,protein
interactions,neuralnetworks
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
From Social to Hard Sciences...
Networks of interpersonal relations
Oldideainsociology: “relevantothers”(Miller,1963)
Explainingpatternsofinteractionsamongpeopleofgroups
Friendship(Rapoport&Horvath,1961;Milgram,1967)
Marriage(Padgett&Ansell,1993)
Job-marketinteractions(Granovetter,1974)
Statistical analysis of network topology
Albert&Barabási(2002),Newman(2003),Pastor-Satorras
&Vespignani(2004),Dorogovtsev&Mendes(2003),...
Propertiesofreal-worldtechnological,biologicaland
informationnetworks
WWWandtheInternet,peer-to-peernetworks,powergrids,train
routes,airlineconnections,electroniccircuits,metabolism,protein
interactions,neuralnetworks
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
...And Back to Social Sciences (Econophysics)
Empirical analysis of social and economic networks
Socio-economicsystemsasnetworks?
Anon-exhaustivelistofapplications
scientificco-authorship(Newman,2001)andcitation(Redner,1998)
telephonecalls(Aielloetal.,2000)
emailexchanges(KossinetsandWatts,2006)
sexualrelationships(Liljerosetal.,2001)
knowledgespill-oversamongfirmsinindustrialclusters(GiulianiandBell,2001)
marketinvestment(BattistonandCatanzaro,2004)
patentcitationandinnovationnetworks(BreschiandLissoni,2001;Ahuja,2000)
firmallianceformation(Gulati,1998;GarciaPontandNohria,2002)
R&Dteamsandotherwithin-firmnetworks(Reagansandco-authors,2001,2004)
socialcapital(Walker,Kogut,andShan,1997)
companyownershipandcontrol(Garlaschellietal.,2005)
financialnetworks(Kullmanetal.,2001)
bank-firmrelationships(DeMasietal.,2007)
andalso...
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
...And Back to Social Sciences (Econophysics)
Empirical analysis of social and economic networks
Socio-economicsystemsasnetworks?
Anon-exhaustivelistofapplications
scientificco-authorship(Newman,2001)andcitation(Redner,1998)
telephonecalls(Aielloetal.,2000)
emailexchanges(KossinetsandWatts,2006)
sexualrelationships(Liljerosetal.,2001)
knowledgespill-oversamongfirmsinindustrialclusters(GiulianiandBell,2001)
marketinvestment(BattistonandCatanzaro,2004)
patentcitationandinnovationnetworks(BreschiandLissoni,2001;Ahuja,2000)
firmallianceformation(Gulati,1998;GarciaPontandNohria,2002)
R&Dteamsandotherwithin-firmnetworks(Reagansandco-authors,2001,2004)
socialcapital(Walker,Kogut,andShan,1997)
companyownershipandcontrol(Garlaschellietal.,2005)
financialnetworks(Kullmanetal.,2001)
bank-firmrelationships(DeMasietal.,2007)
andalso...
Introduction Literature NetworkAnalysis Data Results(1/2) Summary(1/2)
The network of international trade flows (1/3)
Main idea
Weboftraderelationsamongcountriesasanetworks
Countries=nodes
Links=existenceoftraderelationship(import/export)
Any value added?
Standardempirics: imports-exportsascountry-specific
variables
Networkanalysis: flowsasrelationalvariables
Topologicalstructure,higher-ordertradestructure
Networkstructureandmacroeconomicdynamics