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The effects of node exclusion on the centrality measures in graph models of interacting economic agents

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  • Caetano, Marco Antonio Leonel
  • Yoneyama, Takashi

Abstract

This work concerns the study of the effects felt by a network as a whole when a specific node is perturbed. Many real world systems can be described by network models in which the interactions of the various agents can be represented as an edge of a graph. With a graph model in hand, it is possible to evaluate the effect of deleting some of its edges on the architecture and values of nodes of the network. Eventually a node may end up isolated from the rest of the network and an interesting problem is to have a quantitative measure of the impact of such an event. For instance, in the field of finance, the network models are very popular and the proposed methodology allows to carry out “what if” tests in terms of weakening the links between the economic agents, represented as nodes.

Suggested Citation

  • Caetano, Marco Antonio Leonel & Yoneyama, Takashi, 2015. "The effects of node exclusion on the centrality measures in graph models of interacting economic agents," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 430(C), pages 216-223.
    • Handle: RePEc:eee:phsmap:v:430:y:2015:i:c:p:216-223
    DOI: 10.1016/j.physa.2015.02.093
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    References listed on IDEAS

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    1. Onnela, J.-P. & Chakraborti, A. & Kaski, K. & Kertész, J., 2003. "Dynamic asset trees and Black Monday," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 324(1), pages 247-252.
    2. Andrew G. Haldane & Robert M. May, 2011. "Systemic risk in banking ecosystems," Nature, Nature, vol. 469(7330), pages 351-355, January.
    3. Caetano, Marco Antonio Leonel & Yoneyama, Takashi, 2012. "A method for detection of abrupt changes in the financial market combining wavelet decomposition and correlation graphs," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(20), pages 4877-4882.
    4. Nier, Erlend & Yang, Jing & Yorulmazer, Tanju & Alentorn, Amadeo, 2007. "Network models and financial stability," Journal of Economic Dynamics and Control, Elsevier, vol. 31(6), pages 2033-2060, June.
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