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Multi-scale Reconstruction of Large Supply Networks by Ialongo, Leonardo Niccolò; Bangma, Sylvain; Jansen, Fabian; Garlaschelli, Diego is a scholarly article available to read on EtoBox.

What is Multi-scale Reconstruction of Large Supply Networks about?

The structure of the supply chain network has important implications for modelling economic systems, from growth trajectories to responses to shocks or natural disasters. However, reconstructing firm-to-firm networks from available information poses several practical and theoretical challenges: the lack of publicly available data, the complexity of meso-scale structures, and the high level of heterogeneity of firms. With this work we contribute to the literature on economic network reconstruction by proposing a novel methodology based on a recently developed multi-scale model. This approach has three main advantages over other methods: its parameters are defined to maintain statistical consistency at different scales of node aggregation, it can be applied in a multi-scale setting, and it is computationally more tractable for very large graphs. The consistency at different scales of aggregation, inherent to the model definition, is preserved for any hierarchy of coarse-grainings. The arbitrariness of the aggregation allows us to work across different scales, making it possible to estimate model parameters even when node information is inconsistent, such as when some nodes are firms

Author

Ialongo, Leonardo Niccolò; Bangma, Sylvain; Jansen, Fabian; Garlaschelli, Diego

Published

2024

Language

EN