Complexity in Economic and Social Systems

There is no term that better describes the essential features of human society than complexity. On various levels, from the decision-making processes of individuals, through to the interactions between individuals leading to the spontaneous formation of groups and social hierarchies, up to the collective, herding processes that reshape whole societies, all these features share the property of irreducibility, i.e., they require a holistic, multi-level approach formed by researchers from different disciplines. This Special Issue aims to collect research studies that, by exploiting the latest advances in physics, economics, complex networks, and data science, make a step towards understanding these economic and social systems. The majority of submissions are devoted to financial market analysis and modeling, including the stock and cryptocurrency markets in the COVID-19 pandemic, systemic risk quantification and control, wealth condensation, the innovation-related performance of companies, and more. Looking more at societies, there are papers that deal with regional development, land speculation, and the-fake news-fighting strategies, the issues which are of central interest in contemporary society. On top of this, one of the contributions proposes a new, improved complexity measure

Crisis Spreading Model of the Shareholding Networks of Listed Companies and Their Main Holders and Their Controllability

Bankruptcy of listed companies or shareholders delisting usually causes the crisis spreading in stock markets. Based on the systematic analysis of the epidemic diseases and rumors spreading on the complex networks, the SIR model is introduced to research the crisis spreading in shareholding networks of listed companies and their main holders on the basis of the data about ownership structure in Chinese Stock Markets. The characteristics of shareholding networks are studied, and the parameters for the SIR model are obtained by empirical approach. Then, the numerical computation method is successfully used to analyze the crisis spreading in the networks when the networks meet random failures or intentional attacks. We find the networks have good robustness against the random failures. However, the crisis will spread at a high speed and cause catastrophic damage if there are some failures or attacks on hub vertices in the networks. Under this condition, the networks show obvious vulnerability. Last but not least, the controllability of the networks under the condition of intentional attacks and random failures is studied. The results show that if the network is controlled globally, it is more reliable to allow a politically good new or an appropriate exciting economical policy to play the role in orienting markets under the control of public opinions as the crisis occurs. However, under normal circumstances, controlling a small part of driver vertices representing listed companies, applying appropriate control strategies, and using its characteristics of high efficiency of sending information can effectively control the stock market. Our research provides a new reference to further exploration about the transmission mechanism of the crisis based SIR model and further research on the controllability of crisis spreading in financial markets

The drivers of Corporate Social Responsibility in the supply chain. A case study.

Purpose: The paper studies the way in which a SME integrates CSR into its corporate strategy, the practices it puts in place and how its CSR strategies reflect on its suppliers and customers relations. Methodology/Research limitations: A qualitative case study methodology is used. The use of a single case study limits the generalizing capacity of these findings. Findings: The entrepreneur’s ethical beliefs and value system play a fundamental role in shaping sustainable corporate strategy. Furthermore, the type of competitive strategy selected based on innovation, quality and responsibility clearly emerges both in terms of well defined management procedures and supply chain relations as a whole aimed at involving partners in the process of sustainable innovation. Originality/value: The paper presents a SME that has devised an original innovative business model. The study pivots on the issues of innovation and eco-sustainability in a context of drivers for CRS and business ethics. These values are considered fundamental at International level; the United Nations has declared 2011 the “International Year of Forestry”

The structure and dynamics of multilayer networks

In the past years, network theory has successfully characterized the interaction among the constituents of a variety of complex systems, ranging from biological to technological, and social systems. However, up until recently, attention was almost exclusively given to networks in which all components were treated on equivalent footing, while neglecting all the extra information about the temporal- or context-related properties of the interactions under study. Only in the last years, taking advantage of the enhanced resolution in real data sets, network scientists have directed their interest to the multiplex character of real-world systems, and explicitly considered the time-varying and multilayer nature of networks. We offer here a comprehensive review on both structural and dynamical organization of graphs made of diverse relationships (layers) between its constituents, and cover several relevant issues, from a full redefinition of the basic structural measures, to understanding how the multilayer nature of the network affects processes and dynamics.Comment: In Press, Accepted Manuscript, Physics Reports 201

Unmet goals of tracking: within-track heterogeneity of students' expectations for

Educational systems are often characterized by some form(s) of ability grouping, like tracking. Although substantial variation in the implementation of these practices exists, it is always the aim to improve teaching efficiency by creating homogeneous groups of students in terms of capabilities and performances as well as expected pathways. If students’ expected pathways (university, graduate school, or working) are in line with the goals of tracking, one might presume that these expectations are rather homogeneous within tracks and heterogeneous between tracks. In Flanders (the northern region of Belgium), the educational system consists of four tracks. Many students start out in the most prestigious, academic track. If they fail to gain the necessary credentials, they move to the less esteemed technical and vocational tracks. Therefore, the educational system has been called a 'cascade system'. We presume that this cascade system creates homogeneous expectations in the academic track, though heterogeneous expectations in the technical and vocational tracks. We use data from the International Study of City Youth (ISCY), gathered during the 2013-2014 school year from 2354 pupils of the tenth grade across 30 secondary schools in the city of Ghent, Flanders. Preliminary results suggest that the technical and vocational tracks show more heterogeneity in student’s expectations than the academic track. If tracking does not fulfill the desired goals in some tracks, tracking practices should be questioned as tracking occurs along social and ethnic lines, causing social inequality

A Study Regarding the Re-treatment of the Balance Sheet and of the Profit and Loss Account under Circumstances of Inflation and Hyper-inflation Approached According to the Conception of International Financial Reporting Standards

Inflation constantly has been seen as a controversial economic phenomenon that has generated numberless chronic lacks of balance in economy. In a hyper-inflationist economy the report without inflation re-treatment of the balance sheet and the profit and loss account is no more relevant for those who use accounting data, and the 90s’ Romania certainly faced such a hyper-inflationist economy. As the evaluation basis in accountancy is historic cost, and, due to the fact that under circumstances of high inflation, historic cost suffers a series of changes that distort reality, several accounting methods are employed. Theses accounting methods under circumstances of inflation may rely on conversion, evaluation or other mixed methods that consist in re-treating the financial reports of the companies at opening and closing these financial reports. As under the present circumstances a too rapid economic growth is envisaged for Romania that might determine the increase of inflation, the re-treatment of the balance sheet and of the results account could be a necessity in the future.inflation, balance sheet, profit, loss, re-treatment, evaluation, index, adjustment, price, hyper-inflation

Management for Bachelors

The textbook contains educational module, which embraces the content of main regulatory disciplines on specialists training by the direction 6.030601 “Management” in the knowledge branch 03.06 “Management and administration” of the educational and qualification level “Bachelor”. According to the content the disciplines completely conform to curricula approved by scientific and methodological commission on management and agreed with logical and structural scheme of educational process. The textbook embraces almost all aspects of bachelor training. The chapters contain questions for self-control and list of recommended literature. While creating the chapters the results of fundamental and applied scientific researches of the evaluation branch, the forecasting and management of economic potential of complicated industrial system were used