[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v513y2019icp644-652.html
   My bibliography  Save this article

Hysteresis of economic networks in an XY model

Author

Listed:
  • Hosseiny, Ali
  • Absalan, Mohammadreza
  • Sherafati, Mohammad
  • Gallegati, Mauro
Abstract
Many-body systems can have multiple equilibria. Though the energy of equilibria might be the same, still systems may resist to switch from an unfavored equilibrium to a favored one. In this paper we investigate occurrence of such phenomenon in economic networks. In times of crisis when governments intend to stimulate economy, a relevant question is on the proper size of stimulus bill. To address the answer, we emphasize the role of hysteresis in economic networks. In times of crises, firms and corporations cut their productions; now since their level of activity is correlated, metastable features in the network become prominent. This means that economic networks resist against the recovery actions. To measure the size of resistance in the network against recovery, we deploy the XY model. Though theoretically the XY model has no hysteresis, when it comes to the kinetic behavior in the deterministic regimes, we observe a dynamic hysteresis. We find that to overcome the hysteresis of the network, a minimum size of stimulation is needed for success. Our simulations show that as long as the networks are Watts–Strogatz, such minimum is independent of the characteristics of the networks.

Suggested Citation

  • Hosseiny, Ali & Absalan, Mohammadreza & Sherafati, Mohammad & Gallegati, Mauro, 2019. "Hysteresis of economic networks in an XY model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 513(C), pages 644-652.
    • Handle: RePEc:eee:phsmap:v:513:y:2019:i:c:p:644-652
    DOI: 10.1016/j.physa.2018.08.064
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437118310045
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2018.08.064?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dur, Robert & Sol, Joeri, 2010. "Social interaction, co-worker altruism, and incentives," Games and Economic Behavior, Elsevier, vol. 69(2), pages 293-301, July.
    2. Battiston, Stefano & Delli Gatti, Domenico & Gallegati, Mauro & Greenwald, Bruce & Stiglitz, Joseph E., 2012. "Liaisons dangereuses: Increasing connectivity, risk sharing, and systemic risk," Journal of Economic Dynamics and Control, Elsevier, vol. 36(8), pages 1121-1141.
    3. Hosseiny, Ali, 2017. "A geometrical imaging of the real gap between economies of China and the United States," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 479(C), pages 151-161.
    4. Scalas, Enrico & Gorenflo, Rudolf & Mainardi, Francesco, 2000. "Fractional calculus and continuous-time finance," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 284(1), pages 376-384.
    5. Adrian Dragulescu & Victor M. Yakovenko, 2000. "Statistical mechanics of money," Papers cond-mat/0001432, arXiv.org, revised Aug 2000.
    6. Hosseiny, Ali & Gallegati, Mauro, 2017. "Role of intensive and extensive variables in a soup of firms in economy to address long run prices and aggregate data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 470(C), pages 51-59.
    7. Iacopo Mastromatteo & Bence Toth & Jean-Philippe Bouchaud, 2013. "Agent-based models for latent liquidity and concave price impact," Papers 1311.6262, arXiv.org, revised Dec 2014.
    8. William A. Brock & Steven N. Durlauf, 2001. "Discrete Choice with Social Interactions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 235-260.
    9. Steven N. Durlauf & Yannis M. Ioannides, 2010. "Social Interactions," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 451-478, September.
    10. Aoyama,Hideaki & Fujiwara,Yoshi & Ikeda,Yuichi & Iyetomi,Hiroshi & Souma,Wataru Preface by-Name:Yoshikawa,Hiroshi, 2010. "Econophysics and Companies," Cambridge Books, Cambridge University Press, number 9780521191494, September.
    11. Ali Hosseiny & Mohammad Bahrami & Antonio Palestrini & Mauro Gallegati, 2016. "Metastable Features of Economic Networks and Responses to Exogenous Shocks," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-22, October.
    12. Lawrence E. Blume & William A. Brock & Steven N. Durlauf & Yannis M. Ioannides, 2010. "Identification of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0754, Department of Economics, Tufts University.
    13. Cerqueti, Roy & Ausloos, Marcel, 2015. "Evidence of economic regularities and disparities of Italian regions from aggregated tax income size data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 421(C), pages 187-207.
    14. Lenzu, Simone & Tedeschi, Gabriele, 2012. "Systemic risk on different interbank network topologies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(18), pages 4331-4341.
    15. Mainardi, Francesco & Raberto, Marco & Gorenflo, Rudolf & Scalas, Enrico, 2000. "Fractional calculus and continuous-time finance II: the waiting-time distribution," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 287(3), pages 468-481.
    16. William A. Brock & Steven N. Durlauf, 2010. "Adoption Curves and Social Interactions," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 232-251, March.
    17. Daron Acemoglu & Vasco M. Carvalho & Asuman Ozdaglar & Alireza Tahbaz‐Salehi, 2012. "The Network Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 80(5), pages 1977-2016, September.
    18. Martha G. Alatriste Contreras & Giorgio Fagiolo, 2014. "Propagation of economic shocks in input-output networks: A cross-country analysis," Post-Print hal-01474258, HAL.
    19. Nekovee, M. & Moreno, Y. & Bianconi, G. & Marsili, M., 2007. "Theory of rumour spreading in complex social networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 374(1), pages 457-470.
    20. Safdari, H. & Hosseiny, A. & Vasheghani Farahani, S. & Jafari, G.R., 2016. "A picture for the coupling of unemployment and inflation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 444(C), pages 744-750.
    21. Taha Yasseri & Robert Sumi & András Rung & András Kornai & János Kertész, 2012. "Dynamics of Conflicts in Wikipedia," PLOS ONE, Public Library of Science, vol. 7(6), pages 1-12, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bahrami, Mohammad & Chinichian, Narges & Hosseiny, Ali & Jafari, Gholamreza & Ausloos, Marcel, 2020. "Optimization of the post-crisis recovery plans in scale-free networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    2. Allahyari, N. & Hosseiny, A. & Abedpour, N. & Jafari, G.R., 2024. "Analyzing the heterogeneous structure of the genes interaction network through the random matrix theory," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 641(C).
    3. James Holehouse & Hector Pollitt, 2021. "Non-equilibrium time-dependent solution to discrete choice with social interactions," Papers 2109.09633, arXiv.org, revised Jan 2022.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bahrami, Mohammad & Chinichian, Narges & Hosseiny, Ali & Jafari, Gholamreza & Ausloos, Marcel, 2020. "Optimization of the post-crisis recovery plans in scale-free networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).
    2. Hosseiny, Ali & Gallegati, Mauro, 2017. "Role of intensive and extensive variables in a soup of firms in economy to address long run prices and aggregate data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 470(C), pages 51-59.
    3. Ali Hosseiny & Mohammad Bahrami & Antonio Palestrini & Mauro Gallegati, 2016. "Metastable Features of Economic Networks and Responses to Exogenous Shocks," PLOS ONE, Public Library of Science, vol. 11(10), pages 1-22, October.
    4. Maness, Michael & Cirillo, Cinzia, 2016. "An indirect latent informational conformity social influence choice model: Formulation and case study," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 75-101.
    5. Mercure, Jean-François, 2018. "Fashion, fads and the popularity of choices: Micro-foundations for diffusion consumer theory," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 194-207.
    6. González, Felipe, 2020. "Collective action in networks: Evidence from the Chilean student movement," Journal of Public Economics, Elsevier, vol. 188(C).
    7. Maness, Michael & Cirillo, Cinzia & Dugundji, Elenna R., 2015. "Generalized behavioral framework for choice models of social influence: Behavioral and data concerns in travel behavior," Journal of Transport Geography, Elsevier, vol. 46(C), pages 137-150.
    8. Steven N. Durlauf & Daniel S. Nagin, 2010. "The Deterrent Effect of Imprisonment," NBER Chapters, in: Controlling Crime: Strategies and Tradeoffs, pages 43-94, National Bureau of Economic Research, Inc.
    9. Leonidov, Andrey & Vasilyeva, Ekaterina, 2022. "Strategic stiffening/cooling in the Ising game," Chaos, Solitons & Fractals, Elsevier, vol. 160(C).
    10. Semih Tumen & Tugba Zeydanli, 2015. "Is Happiness Contagious? Separating Spillover Externalities from the Group-Level Social Context," Journal of Happiness Studies, Springer, vol. 16(3), pages 719-744, June.
    11. Li, Chunxiao & Gilleskie, Donna B., 2021. "The influence of endogenous behaviors among social pairs: Social interaction effects of smoking," Journal of Health Economics, Elsevier, vol. 80(C).
    12. Shi, Yuxing & Cai, Yu & Zhao, Minjuan, 2021. "Social interaction effect of rotational grazing and its policy implications for sustainable use of grassland: Evidence from pastoral areas in Inner Mongolia and Gansu, China," Land Use Policy, Elsevier, vol. 111(C).
    13. Manca, Francesco & Sivakumar, Aruna & Daina, Nicolò & Axsen, Jonn & Polak, John W, 2020. "Modelling the influence of peers’ attitudes on choice behaviour: Theory and empirical application on electric vehicle preferences," Transportation Research Part A: Policy and Practice, Elsevier, vol. 140(C), pages 278-298.
    14. Kourtellos, Andros & Petrou, Kyriakos, 2022. "The role of social interactions in preferences for redistribution," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 716-737.
    15. Michael D. König & Xiaodong Liu & Yves Zenou, 2019. "R&D Networks: Theory, Empirics, and Policy Implications," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 476-491, July.
    16. Khan, M. Ali & Rath, Kali P. & Sun, Yeneng & Yu, Haomiao, 2013. "Large games with a bio-social typology," Journal of Economic Theory, Elsevier, vol. 148(3), pages 1122-1149.
    17. Agostinelli, Francesco & Doepke, Matthias & Sorrenti, Giuseppe & Zilibotti, Fabrizio, 2022. "When the great equalizer shuts down: Schools, peers, and parents in pandemic times," Journal of Public Economics, Elsevier, vol. 206(C).
    18. Santiago Pereda-Fernández, 2017. "Social Spillovers in the Classroom: Identification, Estimation and Policy Analysis," Economica, London School of Economics and Political Science, vol. 84(336), pages 712-747, October.
    19. William R. Kerr & Martin Mandorff, 2023. "Social Networks, Ethnicity, and Entrepreneurship," Journal of Human Resources, University of Wisconsin Press, vol. 58(1), pages 183-220.
    20. Costas Azariadis & Yannis M. Ioannides, 2014. "Thinking About Corruption in Greece," Discussion Papers Series, Department of Economics, Tufts University 0783, Department of Economics, Tufts University.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:513:y:2019:i:c:p:644-652. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.