arXiv subjects

Stefan Thurner

Publications and source records attributed to Stefan Thurner.

At least 55 records · Page 3Linked to original sources

arXiv2021

Inferring supply networks from mobile phone data to estimate the resilience of a national economy

National economies rest on networks of millions of customer-supplier relations. Some companies -- in the case of their default -- can trigger significant cascades of shock in the supply-chain network and are thus systemically risky. Up to now, systemic risk of individual companies was practically not quantifiable, due to the unavailability of firm-level transaction data. So far, economic shocks are typically studied in the framework of input-output analysis on the industry-level that can't relate risk to individual firms. Exact firm-level supply networks based on tax or payment data exist only for very few countries. Here we explore to what extent telecommunication data can be used as an inexpensive, easily available, and real-time alternative to reconstruct national supply networks on the firm-level. We find that the conditional probability of correctly identifying a true customer-supplier link -- given a communication link exists -- is about 90%. This quality level allows us to reliably estimate a systemic risk profile of an entire country that serves as a proxy for the resilience of its economy. In particular, we are able to identify the high systemic risk companies. We find that 65 firms have the potential to trigger large cascades of disruption in production chains that could cause severe damages in the economy. We verify that the topological features of the inter-firm communication network are highly similar to national production networks with exact firm-level interactions.

econ.GN↗

arXiv2021

Quantifying firm-level economic systemic risk from nation-wide supply networks

Crises like COVID-19 or the Japanese earthquake in 2011 exposed the fragility of corporate supply networks. The production of goods and services is a highly interdependent process and can be severely impacted by the default of critical suppliers or customers. While knowing the impact of individual companies on national economies is a prerequisite for efficient risk management, the quantitative assessment of the involved economic systemic risks (ESR) is hitherto practically non-existent, mainly because of a lack of fine-grained data in combination with coherent methods. Based on a unique value added tax dataset we derive the detailed production network of an entire country and present a novel approach for computing the ESR of all individual firms. We demonstrate that a tiny fraction (0.035%) of companies has extraordinarily high systemic risk impacting about 23% of the national economic production should any of them default. Firm size alone cannot explain the ESR of individual companies; their position in the production networks does matter substantially. If companies are ranked according to their economic systemic risk index (ESRI), firms with a rank above a characteristic value have very similar ESRI values, while for the rest the rank distribution of ESRI decays slowly as a power-law; 99.8% of all companies have an impact on less than 1% of the economy. We show that the assessment of ESR is impossible with aggregate data as used in traditional Input-Output Economics. We discuss how simple policies of introducing supply chain redundancies can reduce ESR of some extremely risky companies.

econ.GN↗

arXiv2021

Thermodynamics of structure-forming systems

Structure-forming systems are ubiquitous in nature, ranging from atoms building molecules to self-assembly of colloidal amphibolic particles. The understanding of the underlying thermodynamics of such systems remains an important problem. Here we derive the entropy for structure-forming systems that differs from Boltzmann-Gibbs entropy by a term that explicitly captures clustered states. For large systems and low concentrations, the approach is equivalent to the grand-canonical ensemble; for small systems, we find significant deviations. We derive the detailed fluctuation theorem and Crooks' work fluctuation theorem for structure-forming systems. The connection to the theory of particle self-assembly is discussed. We apply the results to several physical systems. We present the phase diagram for patchy particles described by the Kern-Frenkel potential. We show that the Curie-Weiss model with molecule structures exhibits a first-order phase transition.

cond-mat.stat-mech↗

arXiv2020

Balanced and fragmented phases in societies with homophily and social balance

Recent attempts to understand the origin of social fragmentation are based on spin models which include terms accounting for two social phenomena: homophily -- the tendency for people with similar opinions to establish positive relations -- and social balance -- the tendency for people to establish balanced triadic relations. Spins represent attribute vectors that encode multiple (binary) opinions of individuals and social interactions between individuals can be positive or negative. Recent work suggests that large systems of N >> 1 individuals never reach a balanced state (where unbalanced triads with one or three hostile links remain), provided the number of attributes for each agent is less than O(N^2) [Phys. Rev. Lett. 125, 078302]. Here we show that this statement is overly restrictive. Within a Hamiltonian framework that minimizes individuals' social stress, we demonstrate that stationary, balanced, but fragmented states can be reached for any number of attributes, if, in addition to homophily, individuals take into account a significant fraction, q, of their triadic relations. Above a critical value q_c, balanced states result. This result also holds for sparse realistic social networks. Finally, in the limit of small q, our result agrees with that of [Phys. Rev. Lett. 125, 078302].

physics.soc-ph↗

arXiv2020

Behavioral gender differences are reinforced during the COVID-19 crisis

Behavioral gender differences are known to exist for a wide range of human activities including the way people communicate, move, provision themselves, or organize leisure activities. Using mobile phone data from 1.2 million devices in Austria (15% of the population) across the first phase of the COVID-19 crisis, we quantify gender-specific patterns of communication intensity, mobility, and circadian rhythms. We show the resilience of behavioral patterns with respect to the shock imposed by a strict nation-wide lock-down that Austria experienced in the beginning of the crisis with severe implications on public and private life. We find drastic differences in gender-specific responses during the different phases of the pandemic. After the lock-down gender differences in mobility and communication patterns increased massively, while sleeping patterns and circadian rhythms tend to synchronize. In particular, women had fewer but longer phone calls than men during the lock-down. Mobility declined massively for both genders, however, women tend to restrict their movement stronger than men. Women showed a stronger tendency to avoid shopping centers and more men frequented recreational areas. After the lock-down, males returned back to normal quicker than women; young age-cohorts return much quicker. Differences are driven by the young and adolescent population. An age stratification highlights the role of retirement on behavioral differences. We find that the length of a day of men and women is reduced by one hour. We discuss the findings in the light of gender-specific coping strategies in response to stress and crisis.

physics.soc-ph↗

arXiv2020

Balancing quarantine and self-distancing measures in adaptive epidemic networks

We study the relative importance of two key control measures for epidemic spreading: endogenous social self-distancing and exogenous imposed quarantine. We use the framework of adaptive networks, moment-closure, and ordinary differential equations (ODEs) to introduce several novel models based upon susceptible-infected-recovered (SIR) dynamics. First, we compare computationally expensive, adaptive network simulations with their corresponding computationally highly efficient ODE equivalents and find excellent agreement. Second, we discover that there exists a relatively simple critical curve in parameter space for the epidemic threshold, which strongly suggests that there is a mutual compensation effect between the two mitigation strategies: as long as social distancing and quarantine measures are both sufficiently strong, large outbreaks are prevented. Third, we study the total number of infected and the maximum peak during large outbreaks using a combination of analytical estimates and numerical simulations. Also for large outbreaks we find a similar compensation effect as for the epidemic threshold. This suggests that if there is little incentive for social distancing within a population, drastic quarantining is required, and vice versa. Both pure scenarios are unrealistic in practice. Our models show that only a combination of measures is likely to succeed to control epidemic spreading. Fourth, we analytically compute an upper bound for the total number of infected on adaptive networks, using integral estimates in combination with the moment-closure approximation on the level of an observable. This is a methodological innovation. Our method allows us to elegantly and quickly check and cross-validate various conjectures about the relevance of different network control measures.

q-bio.PE↗

arXiv2020

Why are most COVID-19 infection curves linear?

Many countries have passed their first COVID-19 epidemic peak. Traditional epidemiological models describe this as a result of non-pharmaceutical interventions that pushed the growth rate below the recovery rate. In this new phase of the pandemic many countries show an almost linear growth of confirmed cases for extended time-periods. This new containment regime is hard to explain by traditional models where infection numbers either grow explosively until herd immunity is reached, or the epidemic is completely suppressed (zero new cases). Here we offer an explanation of this puzzling observation based on the structure of contact networks. We show that for any given transmission rate there exists a critical number of social contacts, $D_c$, below which linear growth and low infection prevalence must occur. Above $D_c$ traditional epidemiological dynamics takes place, as e.g. in SIR-type models. When calibrating our corresponding model to empirical estimates of the transmission rate and the number of days being contagious, we find $D_c\sim 7.2$. Assuming realistic contact networks with a degree of about 5, and assuming that lockdown measures would reduce that to household-size (about 2.5), we reproduce actual infection curves with a remarkable precision, without fitting or fine-tuning of parameters. In particular we compare the US and Austria, as examples for one country that initially did not impose measures and one that responded with a severe lockdown early on. Our findings question the applicability of standard compartmental models to describe the COVID-19 containment phase. The probability to observe linear growth in these is practically zero.

physics.soc-ph↗

arXiv2020

The effect of social balance on social fragmentation

With the availability of cell phones, internet, social media etc. the interconnectedness of people within most societies has increased drastically over the past three decades. Across the same timespan, we are observing the phenomenon of increasing levels of fragmentation in society into relatively small and isolated groups that have been termed filter bubbles, or echo chambers. These pose a number of threats to open societies, in particular, a radicalisation in political, social or cultural issues, and a limited access to facts. In this paper we show that these two phenomena might be tightly related. We study a simple stochastic co-evolutionary model of a society of interacting people. People are not only able to update their opinions within their social context, but can also update their social links from collaborative to hostile, and vice versa. The latter is implemented such that social balance is realised. We find that there exists a critical level of interconnectedness, above which society fragments into small sub-communities that are positively linked within and hostile towards other groups. We argue that the existence of a critical communication density is a universal phenomenon in all societies that exhibit social balance. The necessity arises from the underlying mathematical structure of a phase transition phenomenon that is known from the theory of a kind of disordered magnets called spin glasses. We discuss the consequences of this phase transition for social fragmentation in society.

physics.soc-ph↗

arXiv2020

Information geometry of scaling expansions of non-exponentially growing configuration spaces

Many stochastic complex systems are characterized by the fact that their configuration space doesn't grow exponentially as a function of the degrees of freedom. The use of scaling expansions is a natural way to measure the asymptotic growth of the configuration space volume in terms of the scaling exponents of the system. These scaling exponents can, in turn, be used to define universality classes that uniquely determine the statistics of a system. Every system belongs to one of these classes. Here we derive the information geometry of scaling expansions of sample spaces. In particular, we present the deformed logarithms and the metric in a systematic and coherent way. We observe a phase transition for the curvature. The phase transition can be well measured by the characteristic length r, corresponding to a ball with radius 2r having the same curvature as the statistical manifold. Increasing characteristic length with respect to the size of the system is associated with sub-exponential sample space growth is associated with strongly constrained and correlated complex systems. Decreasing of the characteristic length corresponds to super-exponential sample space growth that occurs for example in systems that develop structure as they evolve. Constant curvature means exponential sample space growth that is associated with multinomial statistics, and traditional Boltzmann-Gibbs, or Shannon statistics applies. This allows us to characterize transitions between statistical manifolds corresponding to different families of probability distributions.

cond-mat.stat-mech↗

arXiv2020

Boosting test-efficiency by pooled testing strategies for SARS-CoV-2

In the current COVID19 crisis many national healthcare systems are confronted with an acute shortage of tests for confirming SARS-CoV-2 infections. For low overall infection levels in the population, pooling of samples can drastically amplify the testing efficiency. Here we present a formula to estimate the optimal pooling size, the efficiency gain (tested persons per test), and the expected upper bound of missed infections in the pooled testing, all as a function of the populationwide infection levels and the false negative/positive rates of the currently used PCR tests. Assuming an infection level of 0.1 % and a false negative rate of 2 %, the optimal pool size is about 32, the efficiency gain is about 15 tested persons per test. For an infection level of 1 % the optimal pool size is 11, the efficiency gain is 5.1 tested persons per test. For an infection level of 10 % the optimal pool size reduces to about 4, the efficiency gain is about 1.7 tested persons per test. For infection levels of 30 % and higher there is no more benefit from pooling. To see to what extent replicates of the pooled tests improve the estimate of the maximal number of missed infections, we present all results for 1, 3, and 5 replicates.

q-bio.PE↗

arXiv2020

Quantifying exaptation in scientific evolution

Rediscovering a new function for something can be just as important as the discovery itself. In 1982, Stephen Jay Gould and Elisabeth Vrba named this phenomenon Exaptation to describe a radical shift in the function of a specific trait during biological evolution. While exaptation is thought to be a fundamental mechanism for generating adaptive innovations, diversity, and sophisticated features, relatively little effort has been made to quantify exaptation outside the topic of biological evolution. We think that this concept provides a useful framework for characterising the emergence of innovations in science. This article explores the notion that exaptation arises from the usage of scientific ideas in domains other than the area that they were originally applied to. In particular, we adopt a normalised entropy and an inverse participation ratio as observables that reveal and quantify the concept of exaptation. We identify distinctive patterns of exaptation and expose specific examples of papers that display those patterns. Our approach represents a first step towards the quantification of exaptation phenomena in the context of scientific evolution.

physics.soc-ph↗

arXiv2019

The role of mainstreamness and interdisciplinarity for the relevance of scientific papers

There is demand from science funders, industry, and the public that science should become more risk-taking, more out-of-the-box, and more interdisciplinary. Is it possible to tell how interdisciplinary and out-of-the-box scientific papers are, or which papers are mainstream? Here we use the bibliographic coupling network, derived from all physics papers that were published in the Physical Review journals in the past century, to try to identify them as mainstream, out-of-the-box, or interdisciplinary. We show that the network clusters into scientific fields. The position of individual papers with respect to these clusters allows us to estimate their degree of mainstreamness or interdisciplinary. We show that over the past decades the fraction of mainstream papers increases, the fraction of out-of-the-box decreases, and the fraction of interdisciplinary papers remains constant. Studying the rewards of papers, we find that in terms of absolute citations, both, mainstream and interdisciplinary papers are rewarded. In the long run, mainstream papers perform less than interdisciplinary ones in terms of citation rates. We conclude that to avoid a trend towards mainstreamness a new incentive scheme is necessary.

cs.DL↗

arXiv2019

How the geometry of cities explains urban scaling laws and determines their exponents

Urban scaling laws relate socio-economic, behavioral, and physical variables to the population size of cities and allow for a new paradigm of city planning, and an understanding of urban resilience and economies. Independently of culture and climate, almost all cities exhibit two fundamental scaling exponents, one sub-linear and one super-linear that are related. Here we show that based on fundamental fractal geometric relations of cities we derive both exponents and their relation. Sub-linear scaling arises as the ratio of the fractal dimensions of the road network and the distribution of the population in 3D. Super-linear scaling emerges from human interactions that are constrained by the city geometry. We demonstrate the validity of the framework with data on 4750 European cities. We make several testable predictions, including the relation of average height of cities with population size, and that at a critical population size, growth changes from horizontal densification to three-dimensional growth.

physics.soc-ph↗

arXiv2019

Identification of gatekeeper diseases on the way to cardiovascular mortality

Multimorbidity, the co-occurrence of two or more chronic diseases such as diabetes, obesity or cardiovascular diseases in one patient, is a frequent phenomenon. To make care more efficient, it is of relevance to understand how different diseases condition each other over the life time of a patient. However, most of our current knowledge on such patient careers is either confined to narrow time spans or specific (sets of) diseases. Here, we present a population-wide analysis of long-term patient trajectories by clustering them according to their disease history observed over 17 years. When patients acquire new diseases, their cluster assignment might change. A health trajectory can then be described by a temporal sequence of disease clusters. From the transitions between clusters we construct an age-dependent multilayer network of disease clusters. Random walks on this multilayer network provide a more precise model for the time evolution of multimorbid health states when compared to models that cluster patients based on single diseases. Our results can be used to identify decisive events that potentially determine the future disease trajectory of a patient. We find that for elderly patients the cluster network consists of regions of low, medium and high in-hospital mortality. Diagnoses of diabetes and hypertension are found to strongly increase the likelihood for patients to subsequently move into the high-mortality region later in life.

physics.med-ph↗

arXiv2019

What is the Minimal Systemic Risk in Financial Exposure Networks?

Management of systemic risk in financial markets is traditionally associated with setting (higher) capital requirements for market participants. There are indications that while equity ratios have been increased massively since the financial crisis, systemic risk levels might not have lowered, but even increased. It has been shown that systemic risk is to a large extent related to the underlying network topology of financial exposures. A natural question arising is how much systemic risk can be eliminated by optimally rearranging these networks and without increasing capital requirements. Overlapping portfolios with minimized systemic risk which provide the same market functionality as empirical ones have been studied by [pichler2018]. Here we propose a similar method for direct exposure networks, and apply it to cross-sectional interbank loan networks, consisting of 10 quarterly observations of the Austrian interbank market. We show that the suggested framework rearranges the network topology, such that systemic risk is reduced by a factor of approximately 3.5, and leaves the relevant economic features of the optimized network and its agents unchanged. The presented optimization procedure is not intended to actually re-configure interbank markets, but to demonstrate the huge potential for systemic risk management through rearranging exposure networks, in contrast to increasing capital requirements that were shown to have only marginal effects on systemic risk [poledna2017]. Ways to actually incentivize a self-organized formation toward optimal network configurations were introduced in [thurner2013] and [poledna2016]. For regulatory policies concerning financial market stability the knowledge of minimal systemic risk for a given economic environment can serve as a benchmark for monitoring actual systemic risk in markets.

q-fin.CP↗

arXiv2019

Economic resilience from input-output susceptibility improves predictions of economic growth and recovery

Modern macroeconomic theories were unable to foresee the last Great Recession and could neither predict its prolonged duration nor the recovery rate. They are based on supply-demand equilibria that do not exist during recessionary shocks. Here we focus on resilience as a nonequilibrium property of networked production systems and develop a linear response theory for input-output economics. By calibrating the framework to data from 56 industrial sectors in 43 countries between 2000 and 2014, we find that the susceptibility of individual industrial sectors to economic shocks varies greatly across countries, sectors, and time. We show that susceptibility-based predictions that take sector- and country-specific recovery into account, outperform--by far--standard econometric growth-models. Our results are analytically rigorous, empirically testable, and flexible enough to address policy-relevant scenarios. We illustrate the latter by estimating the impact of recently imposed tariffs on US imports (steel and aluminum) on specific sectors across European countries.

econ.GN↗

arXiv2019

Fashion and art cycles are driven by counter-dominance signals of elite competition: quantitative evidence from music styles

Human symbol systems such as art and fashion styles emerge from complex social processes that govern the continuous re-organization of modern societies. They provide a signaling scheme that allows members of an elite to distinguish themselves from the rest of society. Efforts to understand the dynamics of art and fashion cycles have been based on 'bottom-up' and 'top down' theories. According to 'top down' theories, elite members signal their superior status by introducing new symbols (e.g., fashion styles), which are adopted by low-status groups. In response to this adoption, elite members would need to introduce new symbols to signal their status. According to many 'bottom-up' theories, style cycles evolve from lower classes and follow an essentially random pattern. We propose an alternative explanation based on counter-dominance signaling. There, elite members want others to imitate their symbols; changes only occur when outsider groups successfully challenge the elite by introducing signals that contrast those endorsed by the elite. We investigate these mechanisms using a dynamic network approach on data containing almost 8 million musical albums released between 1956 and 2015. The network systematically quantifies artistic similarities of competing musical styles and their changes over time. We formulate empirical tests for whether new symbols are introduced by current elite members (top-down), randomness (bottom-up) or by peripheral groups through counter-dominance signals. We find clear evidence that counter-dominance-signaling drives changes in musical styles. This provides a quantitative, completely data-driven answer to a century-old debate about the nature of the underlying social dynamics of fashion cycles.

physics.soc-ph↗

arXiv2018

The role of grammar in transition-probabilities of subsequent words in English text

Sentence formation is a highly structured, history-dependent, and sample-space reducing (SSR) process. While the first word in a sentence can be chosen from the entire vocabulary, typically, the freedom of choosing subsequent words gets more and more constrained by grammar and context, as the sentence progresses. This sample-space reducing property offers a natural explanation of Zipf's law in word frequencies, however, it fails to capture the structure of the word-to-word transition probability matrices of English text. Here we adopt the view that grammatical constraints (such as subject--predicate--object) locally re-order the word order in sentences that are sampled with a SSR word generation process. We demonstrate that superimposing grammatical structure -- as a local word re-ordering (permutation) process -- on a sample-space reducing process is sufficient to explain both, word frequencies and word-to-word transition probabilities. We compare the quality of the grammatically ordered SSR model in reproducing several test statistics of real texts with other text generation models, such as the Bernoulli model, the Simon model, and the Monkey typewriting model.

cs.CL↗