(WP 2018-04) Economics and Economic Methodology in a Core-Periphery Economic World

This paper uses a core-periphery distinction to characterize contemporary economics, economic methodology, and also today’s world economy. First, it applies the distinction to the organization of contemporary economics through an examination of the problem of explaining economics’ relations to and boundaries with other disciplines. Second, it argues that economics’ core-periphery organization is replicated in a similar organization of the use and practice of contemporary economic methodology in economics Third, it draws on the use of the core-periphery thinking in economics itself and the uneven development of the world economy to provide possible foundations for economics and economic methodology being organized in core-periphery terms. Fourth, the paper briefly discusses three as a potential countervailing forces operating on the development of contemporary economics that might work against its core-periphery organization

Structural changes in the interbank market across the financial crisis from multiple core-periphery analysis

Interbank markets are often characterised in terms of a core-periphery network structure, with a highly interconnected core of banks holding the market together, and a periphery of banks connected mostly to the core but not internally. This paradigm has recently been challenged for short time scales, where interbank markets seem better characterised by a bipartite structure with more core-periphery connections than inside the core. Using a novel core-periphery detection method on the eMID interbank market, we enrich this picture by showing that the network is actually characterised by multiple core-periphery pairs. Moreover, a transition from core-periphery to bipartite structures occurs by shortening the temporal scale of data aggregation. We further show how the global financial crisis transformed the market, in terms of composition, multiplicity and internal organisation of core-periphery pairs. By unveiling such a fine-grained organisation and transformation of the interbank market, our method can find important applications in the understanding of how distress can propagate over financial networks.Comment: 17 pages, 9 figures, 1 tabl

Exploring the Impact of Socio-Technical Core-Periphery Structures in Open Source Software Development

In this paper we apply the social network concept of core-periphery structure to the sociotechnical structure of a software development team. We propose a socio-technical pattern that can be used to locate emerging coordination problems in Open Source projects. With the help of our tool and method called TESNA, we demonstrate a method to monitor the socio-technical core-periphery movement in Open Source projects. We then study the impact of different core-periphery movements on Open Source projects. We conclude that a steady core-periphery shift towards the core is beneficial to the project, whereas shifts away from the core are clearly not good. Furthermore, oscillatory shifts towards and away from the core can be considered as an indication of the instability of the project. Such an analysis can provide developers with a good insight into the health of an Open Source project. Researchers can gain from the pattern theory, and from the method we use to study the core-periphery movements

Core-periphery organization of complex networks

Networks may, or may not, be wired to have a core that is both itself densely connected and central in terms of graph distance. In this study we propose a coefficient to measure if the network has such a clear-cut core-periphery dichotomy. We measure this coefficient for a number of real-world and model networks and find that different classes of networks have their characteristic values. For example do geographical networks have a strong core-periphery structure, while the core-periphery structure of social networks (despite their positive degree-degree correlations) is rather weak. We proceed to study radial statistics of the core, i.e. properties of the n-neighborhoods of the core vertices for increasing n. We find that almost all networks have unexpectedly many edges within n-neighborhoods at a certain distance from the core suggesting an effective radius for non-trivial network processes

Detecting Core-Periphery Structures by Surprise

Detecting the presence of mesoscale structures in complex networks is of primary importance. This is especially true for financial networks, whose structural organization deeply affects their resilience to events like default cascades, shocks propagation, etc. Several methods have been proposed, so far, to detect communities, i.e. groups of nodes whose connectivity is significantly large. Communities, however do not represent the only kind of mesoscale structures characterizing real-world networks: other examples are provided by bow-tie structures, core-periphery structures and bipartite structures. Here we propose a novel method to detect statistically-signifcant bimodular structures, i.e. either bipartite or core-periphery ones. It is based on a modification of the surprise, recently proposed for detecting communities. Our variant allows for bimodular nodes partitions to be revealed, by letting links to be placed either 1) within the core part and between the core and the periphery parts or 2) just between the (empty) layers of a bipartite network. From a technical point of view, this is achieved by employing a multinomial hypergeometric distribution instead of the traditional (binomial) hypergeometric one; as in the latter case, this allows a p-value to be assigned to any given (bi)partition of the nodes. To illustrate the performance of our method, we report the results of its application to several real-world networks, including social, economic and financial ones.Comment: 11 pages, 10 figures. Python code freely available at https://github.com/jeroenvldj/bimodular_surpris

Finding multiple core-periphery pairs in networks

With a core-periphery structure of networks, core nodes are densely interconnected, peripheral nodes are connected to core nodes to different extents, and peripheral nodes are sparsely interconnected. Core-periphery structure composed of a single core and periphery has been identified for various networks. However, analogous to the observation that many empirical networks are composed of densely interconnected groups of nodes, i.e., communities, a network may be better regarded as a collection of multiple cores and peripheries. We propose a scalable algorithm to detect multiple non-overlapping groups of core-periphery structure in a network. We illustrate our algorithm using synthesised and empirical networks. For example, we find distinct core-periphery pairs with different political leanings in a network of political blogs and separation between international and domestic subnetworks of airports in some single countries in a world-wide airport network.Comment: 11 figures and 9 tables. MATLAB codes are available at www.naokimasuda.net/cp_codes.zi

Re-theorising the core: a ‘globalized’ business elite in Santiago, Chile

World systems theory continues to be a widely adopted approach in theorisations of the contemporary world economy. An important epistemological component to world systems theory is the metaphor of core-periphery. Recent work within the approach has sought to transcend earlier criticisms of regional conceptions of cores, peripheries and semi-peripheries by an increasing sensitivity to local differences and an increasing emphasis on Wallerstein's original idea of core-periphery as process, operating at all scales in the contemporary world system. However, this paper argues that the core-periphery metaphor currently used by world systems theorists is founded around a restrictively narrow spatial epistemology. Such a narrow epistemology implements the core-periphery metaphor only as something which produces territorial outcomes in the physical world. This paper contends that recent work within the social services, concerned with the globalization debate and issues of spatial epistemology, should inform world systems theory in producing a reformulated spatial understanding of the core-periphery metaphor, embodying a wider conception of space to include abstract social spaces. This argument is developed in the notion that the world economy must also be understood as having a ‘social core’: a transnational diasporic business elite exercising decision-making power over the capitalist world system. The contention is grounded in the presentation of research into a case study of such a ‘globalized’ business elite in the capital city of Chile, Santiago