Abstract
In the last couple of years, a large body of theoretical and empirical work has been done emphasizing the network structures of economies. Availability of large data and suitable tools have made such a transition possible. The implications of such work is also apparent in settling age-old debates of micro versus macro foundations and to model and quantify shock propagation mechanisms through the networks. Here I summarize a number of major topics where significant work has been done in the recent times using both physics-based and economics-based models of networks and show that they are complementary in approach.
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Chakrabarti, A.S. (2017). Network Theory in Macroeconomics and Finance. In: Abergel, F., et al. Econophysics and Sociophysics: Recent Progress and Future Directions. New Economic Windows. Springer, Cham. https://doi.org/10.1007/978-3-319-47705-3_5
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