Economics at your fingertips  

Random digraphs with given expected degree sequences: A model for economic networks

Leonardo Bargigli () and Mauro Gallegati ()

Journal of Economic Behavior & Organization, 2011, vol. 78, issue 3, 396-411

Abstract: Abstract Building upon the growing interest for complex network theory, the main ambition of this paper is to contribute to a more effective application of network theory to economic phenomena, and particularly to financial networks. We depart from recent contributions on credit networks in two respects. In the first place, we constrain diversification with the out- and in-degree distribution of nodes, by adopting a suitable extension of the expected degree model for random weighted digraphs. In the second place, we focus on real networks by using this extension as null model for statistical analysis. With the help of statistical inference, we provide a rigorous answer to the following question: do real networks obey our null model? Further, we show that this answer is tightly connected to the existence of clusters or modules, as defined by Newman and Girvan (2004), within networks.

Keywords: Diversification; Complex; networks; Credit; networks; Expected; degree; model; Modularity; Community; structure; of; networks (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Random Digraphs with Given Expected Degree Sequences: A Model for Economic Networks (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Neilson, William Stuart

More articles in Journal of Economic Behavior & Organization from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2017-11-11
Handle: RePEc:eee:jeborg:v:78:y:2011:i:3:p:396-411