Sheri Markose is an invited speaker at the International conference on “Network Science in Economics and Finance”
Economic and financial systems are heterogeneous, evolving, and dynamic in nature. The aggregate behavior of the economy arises out of billions of small-scale interactions that takes place across a large number of economic agents. Network science provides a new set of theoretical and empirical tools to understand the mechanics and the emergent nature of the macroscopic and microscopic behavior of the markets. In this conference, we focus on analytical modelling, econometric and statistical analysis of economic and financial networks. The plan for the conference is to collect thought-leaders in the field of network science and its applications in economics and finance.
The topics included are (not necessarily limited to):
- Financial networks: Systemic risk and failure propagation, banking networks
- Trading relationships: Exchange and intermediation
- Strategic network formation: Games on networks
- Large-scale macroeconomic networks: Migration and trade
- Intersectoral and interfirm networks: Input-output networks of production process
- Learning on networks: Information flow and news diffusion
- Heterogeneity and Pareto laws
- Multiplex networks in economics, finance and sociology
- Information filtration and statistical validation of networks
Intercountry Macro-Net Models: Cross Border and Within Country Imbalances For Systemic Risk and Sustainable Growth
Abstract:
Globalization and financialization have brought about a loss of connectivity in the production networks in advanced economies such as the US. This has led to a loss of functionality in production networks and manifests an impaired capacity for GDP growth. The increased financial sector share of gross operating profits (GOP) to the tune of 60% in the US, signals the oversized growth of the financial sector and growing structural imbalance. We provide a new method based on the Ghosh inverse to estimate the extent to which increases in financial sector share of GOP results in a loss of GDP growth.