Redundancy of Centrality Measures in Financial Market Infrastructures

Constanza Martínez, Ricardo Mariño-Martínez and Javier Miguélez-Márquez

Borradores de Economia from Banco de la Republica de Colombia

Abstract: The concept of centrality has been widely used to monitor systems with a network structure because it allows identifying their most influential participants.This monitoring task can be difficult if the number of system participants is considerably large or if the wide variety of centrality measures currently available produce non-coincident (or mixed) signals. This document uses principal component analysis to evaluate a set of centrality measures calculated for the financial institutions that participate in four financial market infrastructures of Colombia. The results obtained are used to construct general indices of centrality, using the strongest measures of centrality as inputs, and leaving aside those considered redundant. RESUMEN: El concepto de centralidad ha sido ampliamente utilizado para monitorear sistemas con estructura de red ya que permite identificar a los participantes más influyentes. Las labores de monitoreo pueden ser difíciles de realizar si el número de participantes en esos sistemas es considerablemente amplio o si las medidas de centralidad producen resultados no coincidentes o generan señales mixtas. Este documento usa el análisis de componentes principales para evaluar un conjunto de medidas de centralidad calculadas para las instituciones financieras que participan en cuatro infraestructuras de los mercados financieros en Colombia. Los resultados obtenidos son utilizados para construir índices generales de centralidad, utilizando como insumos las medidas de centralidad más fuertes y dejando de lado aquellas consideradas redundantes.

Keywords: centrality; principal component analysis; redundancy analysis; clustering analysis; centralidad; análisis de componentes principales; análisis de redundancia; análisis de clustering (search for similar items in EconPapers)
JEL-codes: C23 C38 G20 (search for similar items in EconPapers)
Pages: 41
Date: 2022-08
New Economics Papers: this item is included in nep-net and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.32468/be.1206

Related works:
Journal Article: Redundancy of Centrality Measures in Financial Market Infrastructures (2023)
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:bdr:borrec:1206

Access Statistics for this paper

More papers in Borradores de Economia from Banco de la Republica de Colombia Cra 7 # 14-78. Contact information at EDIRC.
Bibliographic data for series maintained by Clorith Angélica Bahos Olivera ().