Search

This paper investigates the cryptocurrency network of the FTX exchange during the collapse of its native token, FTT, to understand how network structures adapt to significant financial disruptions, by exploiting vertex centrality measures. Using proprietary data on the transactional relationships between various cryptocurrencies, we construct the filtered correlation matrix to identify the most significant relations in the FTX and Binance markets. By using suitable centrality measures - closeness and information centrality - we assess network stability during FTX's bankruptcy. The findings document the appropriateness of such vertex centralities in understanding the resilience and vulnerabilities of financial networks. By tracking the changes in centrality values before and during the FTX crisis, this study provides useful insights into the structural dynamics of the cryptocurrency market. Results reveal how different cryptocurrencies experienced shifts in their network roles due to the crisis. Moreover, our findings highlight the interconnectedness of cryptocurrency markets and how the failure of a single entity can lead to widespread repercussions that destabilize other nodes of the network.

Modelling how a shock propagates in a temporal network and how the system relaxes back to equilibrium is challenging but important in many applications, such as financial systemic risk. Most studies so far have focused on shocks hitting a link of the network, while often it is the node and its propensity to be connected that are affected by a shock. Using as starting point the configuration model, a specific Exponential Random Graph model, we propose a vector autoregressive (VAR) framework to analytically compute the Impulse Response Function (IRF) of a network metric conditional to a shock on a node. Unlike the standard VAR, the model is a nonlinear function of the shock size and the IRF depends on the state of the network at the shock time. We propose a novel econometric estimation method that combines the Maximum Likelihood Estimation and Kalman filter to estimate the dynamics of the latent parameters and compute the IRF, and we apply the proposed methodology to the dynamical network describing the electronic Market of Interbank Deposit (e-MID).

The energy consumption, the transfer of resources through the international trade, the transition towards renewable energies and the environmental sustainability appear as key drivers in order to evaluate the resilience of the energy systems. Concerning the consumptions, in the literature a great attention has been paid to direct energy, but the production of goods and services also involves indirect energy. Hence, in this work we consider different types of embodied energy sources and the time evolution of the sectors' and countries' interactions. Flows are indeed used to construct a directed and weighted temporal multilayer network based respectively on renewable and non-renewable sources, where sectors are nodes and layers are countries. We provide a methodological approach for analysing the network reliability and resilience and for identifying critical sectors and economies in the system by applying the Multi-Dimensional HITS algorithm. Then, we evaluate central arcs in the network at each time period by proposing a novel topological indicator based on the maximum flow problem. In this way, we provide a full view of economies, sectors and connections that play a relevant role over time in the network and whose removal could heavily affect the stability of the system. We provide a numerical analysis based on the embodied energy flows among countries and sectors in the period from 1990 to 2016. Results prove that the methods are effective in catching the different patterns between renewable and non-renewable energy sources.

The persistence probability is a statistical index that has been proposed to detect one or more communities embedded in a network. Even though its definition is straightforward, e.g, the probability that a random walker remains in a group of nodes, it has been seldom applied possibly for the difficulty of developing an efficient algorithm to calculate it. Here, we propose a new mathematical programming model to find the community with the largest persistence probability. The model is integer fractional programming, but it can be reduced to mixed-integer linear programming with an appropriate variable substitution. Nevertheless, the problem can be solved in a reasonable time for networks of small size only, therefore we developed some heuristic procedures to approximate the optimal solution. First, we elaborated a randomized greedy-ascent method, taking advantage of a peculiar data structure to generate feasible solutions fast. After analyzing the greedy output and determining where the optimal solution is eventually located, we implemented improving procedures based on a local exchange, but applying different long term diversification principles, that are based on variable neighborhood search and random restart. Next, we applied the algorithms on simulated graphs that reproduce accurately the clustering characteristics found in real networks to determine the reliability and the effectiveness of our methodology. Finally, we applied our method to two real networks, comparing our findings to what found by two well-known alternative community detection procedures.

In this paper we propose a methodology suitable for a comprehensive analysis of the global embodied energy flow trough a complex network approach. To this end, we extend the existing literature, providing a multilayer framework based on the environmentally extended input-output analysis. The multilayer structure, with respect to the traditional approach, allows us to unveil the different role of sectors and economies in the system. In order to identify key sectors and economies, we make use of hub and authority scores, by adapting to our framework an extension of the Kleinberg algorithm, called Multi-Dimensional HITS (MD-HITS). A numerical analysis based on multi-region input-output tables shows how the proposed approach provides meaningful insights.

The increasing complexity of interrelated systems has made the use of multiplex networks an important tool for explaining the nature of relations between elements in the system. In this paper, we aim at investigating various aspects of countries' behaviour during the coronavirus pandemic period. By means of a multiplex network we consider simultaneously stringency index values, COVID-19 infections and international trade data, in order to detect clusters of countries that showed a similar reaction to the pandemic. We propose a new methodological approach based on the Estrada communicability for identifying communities on a multiplex network, based on a two-step optimization. At first, we determine the optimal inter-layer intensity between levels by minimizing a distance function. Hence, the optimal inter-layer intensity is used to detect communities on each layer. Our findings show that the community detection on this multiplex network has greater information power than classical methods for single-layer networks. Our approach better reveals clusters on each layer with respect to the application of the same approach on each single-layer. Moreover, detected groups in the multiplex case benefit of a higher cohesion, leading to identifying on each layer a lower number of communities with respect to the ones obtained in the single-layer cases.

International trade is based on a set of complex relationships between different countries that can be modelled as an extremely dense network of interconnected agents. On the one hand, this network might favour the economic growth of countries, but on the other, it can also favour the diffusion of diseases, like the COVID-19. In this paper, we study whether, and to what extent, the topology of the trade network can explain the rate of COVID-19 diffusion and mortality across countries. We compute the countries' centrality measures and we apply the community detection methodology based on communicability distance. Then, we use these measures as focal regressors in a negative binomial regression framework. In doing so, we also compare the effect of different measures of centrality. Our results show that the number of infections and fatalities are larger in countries with a higher centrality in the global trade network.

In this paper we propose and solve a real options model for the optimal adoption of an electric vehicle. A policymaker promotes the abeyance of fossil-fueled vehicles through an incentive, and the representative fossil-fueled vehicle's owner decides the time at which buying an electric vehicle, while minimizing a certain expected cost. This involves a combination of various types of costs: the stochastic opportunity cost of driving one unit distance with a traditional fossil-fueled vehicle instead of an electric one, the cost associated to traffic bans, and the net purchase cost. After determining the optimal switching time and the minimal cost function for a general diffusive opportunity cost, we specialize to the case of a mean-reverting process. In such a setting, we provide a model calibration on real data from Italy, and we study the dependency of the optimal switching time with respect to the model's parameters. Moreover, we study the effect of traffic bans and incentive on the expected optimal switching time. We observe that incentive and traffic bans on fossil-fueled transport can be used as effective tools in the hand of the policymaker to encourage the adoption of electric vehicles, and hence to reduce air pollution.

We report a combined microscopy and spectroscopy study of Au deposited on the Bi2Se3(0001) single crystal surface. At room temperature Au forms islands, according to the Volmer-Weber growth mode. Upon annealing to 100{\deg} C the Au deposits are not stable and assemble into larger and thicker islands. The topological surface state of Bi2Se3 is weakly affected by the presence of Au. Contrary to other metals, such as Ag or Cr, a strong chemical instability at the Au/Bi2Se3 interface is ruled out. Core level analysis highlights Bi diffusion toward the surface of Au islands, in agreement with previous findings, while chemical interaction between Au and atomic Se is limited at the interfacial region. For the investigated range of Au coverages, the Au/Bi2Se3 heterostructure is inert towards CO and CO2 exposure at low pressure (10-8 mbar) regime.

The problem of planar registration consists in finding the transformation that better aligns two point sets. In our setting, the search domain is the set of planar rigid transformations and the objective function is the sum of the distances between each point of the transformed source set and the destination set. We consider a Branch and Bound (BnB) method for finding the globally optimal solution. The algorithm recursively splits the search domain into boxes and computes an upper and a lower bound for the minimum value of the restricted problem. The main contribution of this work is the introduction of a novel lower bound, the relaxation bound, which corresponds to the solution of a concave relaxation of the objective function based on the linearization of the distance. In the BnB we also employ the so called cheap bound, equal to to the sum of the minimum distances between each point of source point set, transformed according to current box, and all the candidate points in the destination point set. We prove, both theoretically and practically, that the novel relaxation bound dominates the cheap bound over small boxes. More precisely, from the theoretical point of view, we prove that the relaxation bound is a second-order approximation of the minimum value, i.e., its distance from the minimum value decreases quadratically with respect to the diameter of the box (see Theorem 1), while the cheap bound is a first-order one (see Proposition 3). From the practical point of view, we show through different computational experiments that the addition of the relaxation bound considerably enhances the performance of the BnB algorithm, compensating the higher cost of its computation with respect to the cheap bound with a strong reduction of the number of BnB nodes to be explored., Comment: 40 pages, 13 figures, 2 tables

The bottom-up fabrication graphene nanoribbons (GNRs) has opened new opportunities to specifically control their electronic and optical properties by precisely controlling their atomic structure. Here, we address excitations in GNRs with periodic structural wiggles, so-called Chevron GNRs. Based on reflectance difference and high-resolution electron energy loss spectroscopies together with ab-initio simulations, we demonstrate that their excited-state properties are dominated by strongly bound excitons. The spectral fingerprints corresponding to different reaction stages in their bottom-up fabrication are also unequivocally identified, allowing us to follow the exciton build-up from the starting monomer precursor to the final ribbon structure.