9 research outputs found
Large-scale structure of a nation-wide production network
Production in an economy is a set of firms' activities as suppliers and
customers; a firm buys goods from other firms, puts value added and sells
products to others in a giant network of production. Empirical study is lacking
despite the fact that the structure of the production network is important to
understand and make models for many aspects of dynamics in economy. We study a
nation-wide production network comprising a million firms and millions of
supplier-customer links by using recent statistical methods developed in
physics. We show in the empirical analysis scale-free degree distribution,
disassortativity, correlation of degree to firm-size, and community structure
having sectoral and regional modules. Since suppliers usually provide credit to
their customers, who supply it to theirs in turn, each link is actually a
creditor-debtor relationship. We also study chains of failures or bankruptcies
that take place along those links in the network, and corresponding
avalanche-size distribution.Comment: 17 pages with 8 figures; revised section VI and references adde
The Fractal Structure of Real Estate Investment Trust Returns: The Search for Evidence of Market Segmentation and Nonlinear Dependency
This article presents a further test for market segmentation between the real estate market and the capital markets. We use rescaled range analysis developed in the fractal geometry literature to test for nonlinear trends in the returns series for different asset classes. We make three major conclusions: (1) the stock market displays tendencies consistent with a random walk, (2) portfolios of mortgage and equity REIT returns display tendencies consistent with a random walk and, (3) conditional upon the methods used, segmentation does not exist between different real estate markets and between the real estate and stock markets. Copyright American Real Estate and Urban Economics Association.