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Preferential attachment in multiple trade networks

Foschi, Rachele and Riccaboni, Massimo and Schiavo, Stefano Preferential attachment in multiple trade networks. Physical Review E, 90. 022817. ISSN 1539-3755 (2014)

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In this paper we develop a model for the evolution of multiple networks which is able to replicate the concentrated and sparse nature of world trade data. Our model is an extension of the preferential attachment growth model to the case of multiple networks. Countries trade a variety of goods of different complexity. Every country progressively evolves from trading less sophisticated to high-tech goods. The probabilities of capturing more trade opportunities at a given level of complexity and of starting to trade more complex goods are both proportional to the number of existing trade links. We provide a set of theoretical predictions and simulative results. A calibration exercise shows that our model replicates the same concentration level of world trade as well as the sparsity pattern of the trade matrix. We also discuss a set of numerical solutions to deal with large multiple networks.

Item Type: Article
Identification Number: 10.1103/PhysRevE.90.022817
Additional Information: © 2014 American Physical Society
Uncontrolled Keywords: PACS number(s): 89.65.Gh, 89.75.Hc
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
Research Area: Economics and Institutional Change
Depositing User: Ms T. Iannizzi
Date Deposited: 02 Sep 2014 12:17
Last Modified: 05 Dec 2014 10:10
URI: http://eprints.imtlucca.it/id/eprint/2278

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