Evolution of Cohesion between USA Financial Sector Companies before, during, and Post-Economic Crisis: Complex Networks Approach

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dc.citation.issue7
dc.citation.rankM22
dc.citation.spage1005
dc.citation.volume24
dc.contributor.authorStević, Vojin
dc.contributor.authorRašajski, Marija
dc.contributor.authorMitrović Dankulov, Marija
dc.date.accessioned2024-06-13T07:21:44Z
dc.date.available2024-06-13T07:21:44Z
dc.date.issued2022-07-20
dc.description.abstractVarious mathematical frameworks play an essential role in understanding the economic systems and the emergence of crises in them. Understanding the relation between the structure of connections between the system’s constituents and the emergence of a crisis is of great importance. In this paper, we propose a novel method for the inference of economic systems’ structures based on complex networks theory utilizing the time series of prices. Our network is obtained from the correlation matrix between the time series of companies’ prices by imposing a threshold on the values of the correlation coefficients. The optimal value of the threshold is determined by comparing the spectral properties of the threshold network and the correlation matrix. We analyze the community structure of the obtained networks and the relation between communities’ inter and intra-connectivity as indicators of systemic risk. Our results show how an economic system’s behavior is related to its structure and how the crisis is reflected in changes in the structure. We show how regulation and deregulation affect the structure of the system. We demonstrate that our method can identify high systemic risks and measure the impact of the actions taken to increase the system’s stability.
dc.identifier.doi10.3390/e24071005
dc.identifier.issn1099-4300
dc.identifier.scopus2-s2.0-85137254460
dc.identifier.urihttps://pub.ipb.ac.rs/handle/123456789/81
dc.identifier.wos000832462900001
dc.language.isoen
dc.publisherMDPI
dc.relation.ispartofEntropy
dc.relation.ispartofabbrEntropy
dc.rightsopenAccess
dc.titleEvolution of Cohesion between USA Financial Sector Companies before, during, and Post-Economic Crisis: Complex Networks Approach
dc.typeArticle
dc.type.versionpublishedVersion
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