Features of the Correlation Structure of Price Indices

Xiangyun Gao, Haizhong An and Weiqiong Zhong

PLOS ONE, 2013, vol. 8, issue 4, 1-9

Abstract: What are the features of the correlation structure of price indices? To answer this question, 5 types of price indices, including 195 specific price indices from 2003 to 2011, were selected as sample data. To build a weighted network of price indices each price index is represented by a vertex, and a positive correlation between two price indices is represented by an edge. We studied the features of the weighted network structure by applying economic theory to the analysis of complex network parameters. We found that the frequency of the price indices follows a normal distribution by counting the weighted degrees of the nodes, and we identified the price indices which have an important impact on the network's structure. We found out small groups in the weighted network by the methods of k-core and k-plex. We discovered structure holes in the network by calculating the hierarchy of the nodes. Finally, we found that the price indices weighted network has a small-world effect by calculating the shortest path. These results provide a scientific basis for macroeconomic control policies.

Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0061091 (text/html)
https://journals.plos.org/plosone/article/file?id= ... 61091&type=printable (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:plo:pone00:0061091

DOI: 10.1371/journal.pone.0061091

Access Statistics for this article

More articles in PLOS ONE from Public Library of Science
Bibliographic data for series maintained by plosone ().