CREF TALK – Complex Networks and Macroeconomic Dynamics

Giorgio Fagiolo
Full professor of economics, Institute of Economics, Sant’Anna School of Advanced Studies.

This talk surveys some recent applications of complex network analysis to macroeconomic dynamics. We introduce the concept of macroeconomic multi-network (MMN), where nodes are world countries and weighted-directed links proxy international bilateral relations along several economic dimensions, e.g. trade, human mobility and migration, finance, investment, and input-output production structure. Using panel data covering several decades, we provide examples showing that the position of countries in the MMN, as well as its topological properties, can affect the spatio-temporal evolution of macroeconomic aggregates in non-trivial ways.