relation: http://eprints.imtlucca.it/2278/
title: Preferential attachment in multiple trade networks
creator: Foschi, Rachele
creator: Riccaboni, Massimo
creator: Schiavo, Stefano
subject: HB Economic Theory
subject: HF Commerce
description: 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.
publisher: American Physical Society
date: 2014-08
type: Article
type: PeerReviewed
format: application/pdf
language: en
identifier: http://eprints.imtlucca.it/2278/1/PhysRevE_Riccaboni_2014.pdf
identifier:   Foschi, Rachele and Riccaboni, Massimo and Schiavo, Stefano  Preferential attachment in multiple trade networks.  Physical Review E, 90.  022817.  ISSN 1539-3755      (2014)  
relation: http://link.aps.org/doi/10.1103/PhysRevE.90.022817
relation: 10.1103/PhysRevE.90.022817