Andrey Leonidov

Theoretical Physics Department, P.N. Lebedev Phhysical Institute, Moscow Chair of Discrete Mathematics,  Moscow Institute of Physics and Technology Laboratory of Social Analysis, Rissian Endowment for Education and Science

Network effects in economics and finance

Abstract. In the talk a review of network-related effects in economics and finance at the examples of interbank input-output and international trade networks is given. We start with discussing systemic risks in the interbank networks related to default contagion propagation. After discussing main characteristics of interbank networks we discuss probabilistic models of default contagion taking into account the bow-tie structure, scale-free degree distributions and disassortativity of the corresponding oriented graph. We continue with the role of topological characteristics of the input-output networks underlying the dynamic macroeconomic multi-sector models of real business cycles, in particular of Bonachich centrality. We conclude with considering topological properties of international trade networks considered as oriented weighted graphs and studying the spillover propagation of import demand shocks.