Network Dynamics in Social and Economical Systems

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Network Dynamics in Social and Economical Systems

• Cesar A. Hidalgo R.1
• Carlos Rodriguez-Sickert2, A.-L. Barabasi1

1 CCNR University of Notre Dame, Notre Dame, IN

• Dept. of Sociology
• Pontificia Universidad Catolica de Chile

Ann Arbor April 2007
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Core-Periphery structure
The Stability of core and peripheral networks
over time. David L. Morgan, Margaret B. Neal and
Paula Carder, Social Networks 19 (1996) 9-25
234 widows, 1 year, 7 panels
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Core Kin
The Stability of core and peripheral networks
over time. David L. Morgan, Margaret B. Neal and
Paula Carder, Social Networks 19 (1996) 9-25
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Another More Recent Support study
They analyzed 77 MBA graduates for 3 time periods
and add relational content. The generating
question was to name people that have taken an
active interest and concerted action in the
advancement of their careers. The conclusion is
that the ties that granted psychosocial support
compromised the inner core.
Relational Instability at the Network Core
Support Dynamics in developmental networks.
Jonathon N. Cummings, Monica C. Higgins,
Social Networks 28 (2006) 38-55
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Yet Another Study

• 42 Women Re-entering college.
• Main Conclusion is that people for work support
  becomes more educated as this women get educated.

Once a friend, always a friend? Effects of
homophily on womens support networks accross a
decade. Jill Suitor, Shirley Keeton, Social
Networks 19 (1997) 51-62
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Status Transition
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Decay Functions
1 Decay Functions. Ronald S.Burt, Social
Networks 22 (2000) 1-28.
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Bridge Decay
Bridge Decay. Ronald S. Burt, Social Networks 24
(2002) 333-363
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The Persistence of Social Ties
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April 16 to April 30 2004 yes
May 1 to May 15 2004 no
May 16 to May 31 2004 yes
June 1 to June 15 2004 no
June 16 to June 30 2004 yes
July 1 to July 15 2004 no
July 16 to July 31 2004 yes
August 1 to August 15 2004 yes
August 16 to August 31 2004 no
September 1 to September 15 2004 no
September 16 to September 30 2004 yes
October 1 to October 15 2004 yes
October 16 to October 31 2004 no
November 1 to November 15 2004 no
November 16 to November 30 2004 no
December 1 to December 15 2004 no
December 16 to December 31 2004 no
January 1 to January 15 2005 yes
January 16 to January 31 2005 no
February 1 to February 15 2005 no
February 16 to February 28 2005 yes
March 1 to March 15 2005 no
March 15 to March 31 2005 yes
Mobile Phone Network
Where? Western Country (Penetration
gt100) Share of the Market 25 Nodes
1.950.426 Edges 7.948.890 (Voice Calls)
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Persistence
Perseverance
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Core-Periphery Structure
Power-Law Decay
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Pij, pi and k
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Pij, pi and C
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Pij and ltreciprocitygt
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Pij, pi, Gender and Age
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Gender And Age
F
M
F
1-M/F
M
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Multivariate Analysis (Node Level)
Linear Regression
p 0.0598 C 0.0122 k 0.3626 r 0.0015 Age
0.0009 Gender 0.2506
Correlations and Partial Correlations
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Multivariate Analysis (Tie Level)
Linear Regression
P 0.09DC 0.002Dk 0.15Dr 0.03 DGender
-0.002DAge 0.35 R 0.56TO 0.16
Correlations and Partial Correlations
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Reality
Conserved Not Conserved
Conserved A B
Not Conserved C D
Test
Prediction Accuracy A/(AB) SensitivityA/(AC)
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Conclusions

• Quantitative Sociology can be performed using
  mobile phone billing data.
• As an example we studied the persistence of ties
  and showed that is strongly coupled to the
  topology of the network.
• This coupling is strong enough to make relatively
  accurate predictions about the existence of ties
  in the future.

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The Product Space and its Consequences for
Economic Growth

• Cesar A. Hidalgo R.1
• Bailey Klinger2, A.-L. Barabasi1, R. Haussman2

1CCNR, Dept of Physics, University of Notre
Dame 2CID, Kennedy School of Government, Harvard
University
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Area of countries proportional to ppp (GDP per
Capita). Source worldmapper.org
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Share of the ith product on the basket of country
c at time t
Share of the ith product on the basket of the
world at time t
fijP(RCAiRCAj)
Fij minP(RCAiRCAj),P(RCAjRCAi)
B. Balassa, The Review of Economics and
Statistics 68, 315 (1986).
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Feenstras Trade Flows(1)
sitc-4 import and export data.
(1) Feenstra, R. R. Lipsey, H. Deng, A. Ma and H.
Mo. 2005. World Trade Flows 1962-2000NBER
working paper 11040. National Bureau of Economic
Research, Cambridge MA.
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Threshold 0.55 Number of Links 1525
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MALAYSIA
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Malaysia 1975
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Malaysia 1980
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Malaysia 1985
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Malaysia 1990
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Malaysia 1995
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Malaysia 2000
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Discovery Factor
Density
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P(transition closest developed product is at
proximity f)
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KEY
Denotes where region has RCA
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Conclusion
We showed

• Product space is heterogeneous
• Constrains the development of RCA
• Rich and poor countries are located in distinct
  places of it

• Development Strategies should be different for
  rich and poor countries
• The structure of the space preventseconomical
  convergence

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Acknowledgments

• A.-L. Barabasi
• B. Klinger
• R. Hausmann
• C. Rodriguez-Sickert
• Kellogg Institute