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Structural importance and evolution: An application to financial transaction networks

Seabrook, I; Barucca, P; Caccioli, F; (2022) Structural importance and evolution: An application to financial transaction networks. Physica A: Statistical Mechanics and its Applications , 607 , Article 128203. 10.1016/j.physa.2022.128203. Green open access

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Abstract

A fundamental problem in the study of networks is the identification of important nodes. This is typically achieved using centrality metrics, which rank nodes in terms of their position in the network. This approach works well for static networks, that do not change over time, but does not consider the dynamics of the network. Here we propose instead to measure the importance of a node based on how much a change to its strength will impact the global structure of the network, which we measure in terms of the spectrum of its adjacency matrix. We apply our method to the identification of important nodes in equity transaction networks and show that, while it can still be computed from a static network, our measure is a good predictor of nodes subsequently transacting. This implies that static representations of temporal networks can contain information about their dynamics.

Type: Article
Title: Structural importance and evolution: An application to financial transaction networks
Open access status: An open access version is available from UCL Discovery
DOI: 10.1016/j.physa.2022.128203
Publisher version: https://doi.org/10.1016/j.physa.2022.128203
Language: English
Additional information: © 2022 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Keywords: Temporal network, Spectral perturbation, Node predictability
UCL classification: UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > Dept of Computer Science
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL
URI: https://discovery.ucl.ac.uk/id/eprint/10157641
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