Network dynamic and stability on European Union

Hernane Borges de Barros Pereira, Raphael Silva do Rosário, Eder Johnson de Area Pereira, Davidson Martins Moreira, Paulo Ferreira and José Garcia Vivas Miranda

Physica A: Statistical Mechanics and its Applications, 2022, vol. 587, issue C

Abstract: This paper proposes an analysis of the financial market of 14 countries of the European Union, under the vision of the dynamic networks using the motif-synchronization method. It is found that the countries of Central Europe (France, the Netherlands, Germany, and the UK) are the most influential in the remaining exchanges of the European Union countries. They were also found as hubs during and after the subprime crisis in Ireland and Greece. The network formed between the indices of the countries in the European Union increased its connectivity constantly from 1988 up to 2008 and 2009, years in which the subprime crisis occurred, and after 2008–2009 the connection gradually decreased until the year 2017, revealing behavior before and after the crisis. The results corroborate the thesis that strongly connected financial networks are more susceptible to exogenous shocks than sparse networks.

Keywords: Eurozone; Stock market; TVG; Motif synchronization; Crisis (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:587:y:2022:i:c:s0378437121008050

DOI: 10.1016/j.physa.2021.126532

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