Search

Production networks constitute the backbone of every economic system. They are inherently fragile as several recent crises clearly highlighted. Estimating the system-wide consequences of local disruptions (systemic risk) requires detailed information on the supply chain networks (SCN) at the firm-level, as systemic risk is associated with specific mesoscopic patterns. However, such information is usually not available and realistic estimates must be inferred from available sector-level data such as input-output tables and firm-level aggregate output data. Here we explore the ability of several maximum-entropy algorithms to infer realizations of SCNs characterized by a realistic level of systemic risk. We are in the unique position to test them against the actual Ecuadorian production network at the firm-level. Concretely, we compare various properties, including the Economic Systemic Risk Index, of the Ecuadorian production network with those from four inference models. We find that the most realistic systemic risk content at the firm-level is retrieved by the model that incorporates information about firm-specific input disaggregated by sector, indicating the importance of correctly accounting for firms' heterogeneous input profiles across sectors. Our results clearly demonstrate the minimal amount of empirical information at the sector level that is necessary to statistically generate synthetic SCNs that encode realistic firm-specific systemic risk.

The steel industry is a major contributor to CO2 emissions, accounting for 7% of global emissions. The European steel industry is seeking to reduce its emissions by increasing the use of electric arc furnaces (EAFs), which can produce steel from scrap, marking a major shift towards a circular steel economy. Here, we show by combining trade with business intelligence data that this shift requires a deep restructuring of the global and European scrap trade, as well as a substantial scaling of the underlying business ecosystem. We find that the scrap imports of European countries with major EAF installations have steadily decreased since 2007 while globally scrap trade started to increase recently. Our statistical modelling shows that every 1,000 tonnes of EAF capacity installed is associated with an increase in annual imports of 550 tonnes and a decrease in annual exports of 1,000 tonnes of scrap, suggesting increased competition for scrap metal as countries ramp up their EAF capacity. Furthermore, each scrap company enables an increase of around 79,000 tonnes of EAF-based steel production per year in the EU. Taking these relations as causal and extrapolating to the currently planned EAF capacity, we find that an additional 730 (SD 140) companies might be required, employing about 35,000 people (IQR 29,000-50,000) and generating an additional estimated turnover of USD 35 billion (IQR 27-48). Our results thus suggest that scrap metal is likely to become a strategic resource. They highlight the need for a massive restructuring of the industry's supply networks and identify the resulting growth opportunities for companies.

In countries with growing elderly populations, multimorbidity poses a significant healthcare challenge. The trajectories along which diseases accumulate as patients age and how they can be targeted by prevention efforts are still not fully understood. We propose a compartmental model, traditionally used in infectious diseases, describing chronic disease trajectories across 132 distinct multimorbidity patterns (compartments). Leveraging a comprehensive dataset from approximately 45 million hospital stays spanning 17 years in Austria, our compartmental disease trajectory model (CDTM) forecasts changes in the incidence of 131 diagnostic groups and their combinations until 2030, highlighting patterns involving hypertensive diseases with cardiovascular diseases and metabolic disorders. We pinpoint specific diagnoses with the greatest potential for preventive interventions to promote healthy aging. According to our model, a reduction of new onsets by 5% of hypertensive diseases (I10-I15) leads to a reduction in all-cause mortality over a period of 15 years by 0.57 (0.06)% and for malignant neoplasms (C00-C97) mortality is reduced by 0.57 (0.07)%. Furthermore, we use the model to assess the long-term consequences of the Covid-19 pandemic on hospitalizations, revealing earlier and more frequent hospitalizations across multiple diagnoses. Our fully data-driven approach identifies leverage points for proactive preparation by physicians and policymakers to reduce the overall disease burden in the population, emphasizing a shift towards patient-centered care.

Globalization has had undesirable effects on the labor standards embedded in the products we consume. This paper proposes an ex-ante evaluation of supply chain due diligence regulations, such as the EU Corporate Sustainable Due Diligence Directive (CSDDD). We construct a full-scale network model derived from structural business statistics of 30 million EU firms to quantify the likelihood of links to firms potentially involved in human rights abuses in the European supply chain. The 900 million supply links of these firms are modeled in a way that is consistent with multiregional input-output data, EU import data, and stylized facts of firm-level production networks. We find that this network exhibits a small world effect with three degrees of separation, meaning that most firms are no more than three steps away from each other in the network. Consequently we find that about 8.5% of EU companies are at risk of having child or forced labor in the first tier of their supply chains, about 82.4% are likely to have such offenders at the second tier and more than 99.1% have such offenders at the third tier. We also profile companies by country, sector, and size for the likelihood of having human rights violations or child and forced labor violations at a given tier in their supply chain, revealing considerable heterogeneity across EU companies. Our results show that supply chain due diligence regulations that focus on monitoring individual buyer-supplier links, as currently proposed in the CSDDD, are likely to be ineffective due to a high degree of redundancy and the fact that individual company value chains cannot be properly isolated from the global supply network. Rather, to maximize cost-effectiveness without compromising due diligence coverage, we suggest that regulations should focus on monitoring individual suppliers., Comment: see also the visualization under https://vis.csh.ac.at/scdd-exposure-indicator/

In public railway systems, minor disruptions can trigger cascading events that lead to delays in the entire system. Typically, delays originate and propagate because the equipment is blocking ways, operational units are unavailable, or at the wrong place at the needed time. The specific understanding of the origins and processes involved in delay-spreading is still a challenge, even though large-scale simulations of national railway systems are becoming available on a highly detailed scale. Without this understanding, efficient management of delay propagation, a growing concern in some Western countries, will remain impossible. Here, we present a systemic risk-based approach to manage daily delay cascading on national scales. We compute the {\em systemic impact} of every train as the maximum of all delays it could possibly cause due to its interactions with other trains, infrastructure, and operational units. To compute it, we design an effective impact network where nodes are train services and links represent interactions that could cause delays. Our results are not only consistent with highly detailed and computationally intensive agent-based railway simulations but also allow us to pinpoint and identify the causes of delay cascades in detail. The systemic approach reveals structural weaknesses in railway systems whenever shared resources are involved. We use the systemic impact to optimally allocate additional shared resources to the system to reduce delays with minimal costs and effort. The method offers a practical and intuitive solution for delay management by optimizing the effective impact network through the introduction of new cheap local train services., Comment: 27 pages, 14 figures

Scientific institutions play a crucial role in driving intellectual, social, and technological progress. Their capacity to innovate depends mainly on their ability to attract, retain, and nurture scientific talent and ultimately make it available to other organizations, industries, or the economy. As researchers change institutions during their careers, their skills are also transferred. The extent and mechanisms by which academic institutions manage their internal portfolio of scientific skills by attracting and sending researchers are far from being understood. We examine 25 million publication histories of 9.2 million scientists extracted from a large-scale bibliographic database covering thousands of research institutions worldwide to understand how the skills of mobile scientists align with those present in-house. We find a clear association between top-ranked institutions and greater skill alignment, i.e., the degree to which skills of incoming academics match those of their colleagues at the institution. We uncover similar high-alignment for scientists leaving top-ranked institutions. This type of academic alignment is more pronounced in engineering and life, health, earth, and physical sciences than in mathematics, computer science, social sciences, and the humanities. We show that over the past two decades, institutions generally have become more closely aligned in their overall skill profiles. We interpret these results in terms of levels of proactive management of the composition of the scientific workforce, diversity, and internal collaboration strategies at the institutional level.

We aim to comprehensively identify typical life-spanning trajectories and critical events that impact patients' hospital utilization and mortality. We use a unique dataset containing 44 million records of almost all inpatient stays from 2003 to 2014 in Austria to investigate disease trajectories. We develop a new, multilayer disease network approach to quantitatively analyse how cooccurrences of two or more diagnoses form and evolve over the life course of patients. Nodes represent diagnoses in age groups of ten years; each age group makes up a layer of the comorbidity multilayer network. Inter-layer links encode a significant correlation between diagnoses (p $<$ 0.001, relative risk $>$ 1.5), while intra-layers links encode correlations between diagnoses across different age groups. We use an unsupervised clustering algorithm for detecting typical disease trajectories as overlapping clusters in the multilayer comorbidity network. We identify critical events in a patient's career as points where initially overlapping trajectories start to diverge towards different states. We identified 1,260 distinct disease trajectories (618 for females, 642 for males) that on average contain 9 (IQR 2-6) different diagnoses that cover over up to 70 years (mean 23 years). We found 70 pairs of diverging trajectories that share some diagnoses at younger ages but develop into markedly different groups of diagnoses at older ages. The disease trajectory framework can help us to identify critical events as specific combinations of risk factors that put patients at high risk for different diagnoses decades later. Our findings enable a data-driven integration of personalized life-course perspectives into clinical decision-making.

Concerns about the integrity of Turkey's elections have increased with the recent transition from a parliamentary democracy to an executive presidency under Recep Tayyip Erdogan. Election forensics tools are used to identify statistical traces of certain types of electoral fraud, providing important information about the integrity and validity of democratic elections. Such analyses of the 2017 and 2018 Turkish elections revealed that malpractices such as ballot stuffing or voter manipulation may indeed have played a significant role in determining the election results. Here, we apply election forensic statistical tests for ballot stuffing and voter manipulation to the results of the 2023 presidential election in Turkey. We find that both rounds of the 2023 presidential election exhibit similar statistical irregularities to those observed in the 2018 presidential election, however the magnitude of these distortions has decreased. We estimate that 2.4% (SD 1.9%) and 1.9% (SD 1.7%) of electoral units may have been affected by ballot stuffing practices in favour of Erdogan in the first and second rounds, respectively, compared to 8.5% (SD 3.9%) in 2018. Areas with smaller polling stations and fewer ballot boxes had significantly inflated votes and turnout, again, in favor of Erdogan. Furthermore, electoral districts with two or fewer ballot boxes were more likely to show large swings in vote shares in favour of Erdogan from the first to the second round. Based on a statistical model, we estimate that these swings translate into 342,000 excess votes (SD 4,900) or 0.64% for Erdogan. Our results suggest that Turkish elections continue to be riddled with statistical irregularities, that may be indicative of electoral fraud.

Realistic credit risk assessment, the estimation of losses from counterparty's failure, is central for the financial stability. Credit risk models focus on the financial conditions of borrowers and only marginally consider other risks from the real economy, supply chains in particular. Recent pandemics, geopolitical instabilities, and natural disasters demonstrated that supply chain shocks do contribute to large financial losses. Based on a unique nation-wide micro-dataset, containing practically all supply chain relations of all Hungarian firms, together with their bank loans, we estimate how firm-failures affect the supply chain network, leading to potentially additional firm defaults and additional financial losses. Within a multi-layer network framework we define a financial systemic risk index (FSRI) for every firm, quantifying these expected financial losses caused by its own- and all the secondary defaulting loans caused by supply chain network (SCN) shock propagation. We find a small fraction of firms carrying substantial financial systemic risk, affecting up to 16% of the banking system's overall equity. These losses are predominantly caused by SCN contagion. For every bank we calculate the expected loss (EL), value at risk (VaR) and expected shortfall (ES), with and without accounting for SCN contagion. We find that SCN contagion amplifies the EL, VaR, and ES by a factor of 4.3, 4.5, and 3.2, respectively. These findings indicate that for a more complete picture of financial stability and realistic credit risk assessment, SCN contagion needs to be considered. This newly quantified contagion channel is of potential relevance for regulators' future systemic risk assessments.

To estimate the reaction of economies to political interventions or external disturbances, input-output (IO) tables -- constructed by aggregating data into industrial sectors -- are extensively used. However, economic growth, robustness, and resilience crucially depend on the detailed structure of non-aggregated firm-level production networks (FPNs). Due to non-availability of data little is known about how much aggregated sector-based and detailed firm-level-based model-predictions differ. Using a nearly complete nationwide FPN, containing 243,399 Hungarian firms with 1,104,141 supplier-buyer-relations we self-consistently compare production losses on the aggregated industry-level production network (IPN) and the granular FPN. For this we model the propagation of shocks of the same size on both, the IPN and FPN, where the latter captures relevant heterogeneities within industries. In a COVID-19 inspired scenario we model the shock based on detailed firm-level data during the early pandemic. We find that using IPNs instead of FPNs leads to errors up to 37% in the estimation of economic losses, demonstrating a natural limitation of industry-level IO-models in predicting economic outcomes. We ascribe the large discrepancy to the significant heterogeneity of firms within industries: we find that firms within one sector only sell 23.5% to and buy 19.3% from the same industries on average, emphasizing the strong limitations of industrial sectors for representing the firms they include. Similar error-levels are expected when estimating economic growth, CO2 emissions, and the impact of policy interventions with industry-level IO models. Granular data is key for reasonable predictions of dynamical economic systems.

Urgently needed carbon emissions reductions might lead to strict command-and-control decarbonization strategies with potentially negative economic consequences. Analysing the entire firm-level production network of a European economy, we have explored how the worst outcomes of such approaches can be avoided. We compared the systemic relevance of every firm in Hungary with its annual CO2 emissions to identify optimal emission-reducing strategies with a minimum of additional unemployment and economic losses. Setting specific reduction targets, we studied various decarbonization scenarios and quantified their economic consequences. We determined that for an emissions reduction of 20%, the most effective strategy leads to losses of about 2% of jobs and 2% of economic output. In contrast, a naive scenario targeting the largest emitters first results in 28% job losses and 33% output reduction for the same target. This demonstrates that it is possible to use firm-level production networks to design highly effective decarbonization strategies that practically preserve employment and economic output., Comment: Nature Sustainability (2024)

Many European countries face rising obesity rates among children, compounded by decreased opportunities for sports activities during the COVID-19 pandemic. Access to sports facilities depends on multiple factors, such as geographic location, proximity to population centers, budgetary constraints, and other socio-economic covariates. Here we show how an optimal allocation of government funds towards sports facilitators (e.g. sports clubs) can be achieved in a data-driven simulation model that maximizes children's access to sports facilities. We compile a dataset for all 1,854 football clubs in Austria, including estimates for their budget, geolocation, tally, and the age profile of their members. We find a characteristic sub-linear relationship between the number of active club members and the budget, which depends on the socio-economic conditions of the clubs' municipality. In the model, where we assume this relationship to be causal, we evaluate different funding strategies. We show that an optimization strategy where funds are distributed based on regional socio-economic characteristics and club budgets outperforms a naive approach by up to 117\% in attracting children to sports clubs for 5 million Euros of additional funding. Our results suggest that the impact of public funding strategies can be substantially increased by tailoring them to regional socio-economic characteristics in an evidence-based and individualized way.

Forecasting the popularity of new songs has become a standard practice in the music industry and provides a comparative advantage for those that do it well. Considerable efforts were put into machine learning prediction models for that purpose. It is known that in these models, relevant predictive parameters include intrinsic lyrical and acoustic characteristics, extrinsic factors (e.g., publisher influence and support), and the previous popularity of the artists. Much less attention was given to the social components of the spreading of song popularity. Recently, evidence for musical homophily - the tendency that people who are socially linked also share musical tastes - was reported. Here we determine how musical homophily can be used to predict song popularity. The study is based on an extensive dataset from the last.fm online music platform from which we can extract social links between listeners and their listening patterns. To quantify the importance of networks in the spreading of songs that eventually determines their popularity, we use musical homophily to design a predictive influence parameter and show that its inclusion in state-of-the-art machine learning models enhances predictions of song popularity. The influence parameter improves the prediction precision (TP/(TP+FN)) by about 50% from 0.14 to 0.21, indicating that the social component in the spreading of music plays at least as significant a role as the artist's popularity or the impact of the genre., Comment: 7 pages, 3 figures

Homophily, the tendency of humans to attract each other when sharing similar features, traits, or opinions has been identified as one of the main driving forces behind the formation of structured societies. Here we ask to what extent homophily can explain the formation of social groups, particularly their size distribution. We propose a spin-glass-inspired framework of self-assembly, where opinions are represented as multidimensional spins that dynamically self-assemble into groups; individuals within a group tend to share similar opinions (intra-group homophily), and opinions between individuals belonging to different groups tend to be different (inter-group heterophily). We compute the associated non-trivial phase diagram by solving a self-consistency equation for 'magnetization' (combined average opinion). Below a critical temperature, there exist two stable phases: one ordered with non-zero magnetization and large clusters, the other disordered with zero magnetization and no clusters. The system exhibits a first-order transition to the disordered phase. We analytically derive the group-size distribution that successfully matches empirical group-size distributions from online communities., Comment: 6 pages, 5 pages of SI, to appear in Phys. Rev. Lett

Dependencies in the global food production network can lead to shortages in numerous regions, as demonstrated by the impacts of the Russia-Ukraine conflict on global food supplies. Here, we reveal the losses of $125$ food products after a localized shock to agricultural production in $192$ countries and territories using a multilayer network model of trade (direct) and conversion of food products (indirect), thereby quantifying $10^8$ shock transmissions. We find that a complete agricultural production loss in Ukraine has heterogeneous impacts on other countries, causing relative losses of up to $89\%$ in sunflower oil and $85\%$ in maize via direct effects, and up to $25\%$ in poultry meat via indirect impacts. Whilst previous studies often treated products in isolation and did not account for product conversion during production, our model studies the global propagation of local supply shocks along both production and trade relations, allowing comparison of different response strategies., Comment: 36 pages, 8 figures. Nat Food (2023)

The effectiveness of non-pharmaceutical interventions to curb the spread of SARS-CoV-2 is determined by numerous contextual factors, including adherence. Conventional wisdom holds that the effectiveness of protective behaviour such as wearing masks always increases with the number of people adopting it. Here we show in a simulation study that this is not true in general. We employ a parsimonious network model based on the well-established empirical facts that (i) adherence to such interventions wanes over time and (ii) individuals tend to align their adoption strategies with their close social ties (homophily). When combining these assumptions, a broad dynamical regime emerges where the individual-level infection risk reduction for those adopting protective behaviour increases as the adherence to protective behavior decreases. For instance, for a protective coverage of 10% we find the infection risk for adopting individuals can be reduced by close to 30% compared to situations where the coverage is 60%. Using estimates for the effectiveness of surgical masks, we find that reductions in relative risk of masking versus non-masking individuals range between 5% and 15%, i.e., vary by a factor of three. This small coverage effect originates from system-dynamical network properties that conspire to increase the chance that an outbreak will be over before the pathogen is able to invade small but tightly connected groups of individuals that protect themselves. Our results contradict the popular belief that masking becomes ineffectual as more people drop their masks and might have far-reaching implications for the protection of vulnerable population groups under resurgent infection waves.

Complex systems that are characterized by strong correlations and fat-tailed distribution functions have been argued to be incompatible within the framework of Boltzmann-Gibbs entropy. As an alternative, so-called generalized entropies were proposed and intensively studied. Here we show that this incompatibility is a misconception. For a broad class of processes, Boltzmann entropy the log multiplicity remains the valid entropy concept, however, for non-i.i.d., non-multinomial, and non-ergodic processes, Boltzmann entropy is not of Shannon form. The correct form of Boltzmann entropy can be shown to be identical with generalized entropies. We derive this result for all processes that can be mapped reversibly to adjoint representations where processes are i.i.d.. In these representations the information production is given by the Shannon entropy. We proof that over the original sampling space this yields functionals that are identical to generalized entropies. The problem of constructing adequate context-sensitive entropy functionals therefore can be translated into the much simpler problem of finding adjoint representations. The method provides a comprehensive framework for a statistical physics of strongly correlated systems and complex processes., Comment: 14 pages paper + SI, 1 figure

We use a comprehensive longitudinal dataset on criminal acts over five years in a European country to study specialization in criminal careers. We cluster crime categories by their relative co-occurrence within criminal careers, deriving a natural, data-based taxonomy of criminal specialization. Defining specialists as active criminals who stay within one category of offending behavior, we study their socio-demographic attributes, geographic range, and positions in their collaboration networks, relative to their generalist counterparts. In comparison to generalists, specialists tend to be older, more likely to be female, operate within a smaller geographic range, and collaborate in smaller, more tightly-knit local networks. We observe that specialists are more intensely embedded in criminal networks and find evidence that specialization indeed reflects division of labor and organization.

Open-source software (OSS) is widely spread in industry, research, and government. OSS represents an effective development model because it harnesses the decentralized efforts of many developers in a way that scales. As OSS developers work independently on interdependent modules, they create a larger cohesive whole in the form of an ecosystem, leaving traces of their contributions and collaborations. Data harvested from these traces enable the study of large-scale decentralized collaborative work. We present curated data on the activity of tens of thousands of developers in the Rust ecosystem and the evolving dependencies between their libraries. The data covers seven years of developer contributions to Rust libraries and can be used to reconstruct the ecosystem's development history, such as growing developer collaboration networks or dependency networks. These are complemented by statistics on downloads and popularity, tracking the dynamics of use and success over time. Altogether the data give a comprehensive view of several dimensions of the ecosystem.

Patients do not access physicians at random but rather via naturally emerging networks of patient flows between them. As retirements, mass quarantines and absence due to sickness during pandemics, or other shocks thin out these networks, the system might be pushed closer to a tipping point where it loses its ability to deliver care to the population. Here we propose a data-driven framework to quantify the regional resilience to such shocks of primary and secondary care in Austria via an agent-based model. For each region and medical specialty we construct detailed patient-sharing networks from administrative data and stress-test these networks by removing increasing numbers of physicians from the system. This allows us to measure regional resilience indicators describing how many physicians can be removed from a certain area before individual patients won't be treated anymore. We find that such tipping points do indeed exist and that regions and medical specialties differ substantially in their resilience. These systemic differences can be related to indicators for individual physicians by quantifying how much their hypothetical removal would stress the system (risk score) or how much of the stress from the removal of other physicians they would be able to absorb (benefit score). Our stress-testing framework could enable health authorities to rapidly identify bottlenecks in access to care as well as to inspect these naturally emerging physician networks and how potential absences would impact them., Comment: See also the dashboard under https://vis.csh.ac.at/care-network-resilience/

For decades the number of scientific publications has been rapidly increasing, effectively out-dating knowledge at a tremendous rate. Only few scientific milestones remain relevant and continuously attract citations. Here we quantify how long scientific work remains being utilized, how long it takes before today's work is forgotten, and how milestone papers differ from those forgotten. To answer these questions, we study the complete temporal citation network of all American Physical Society journals. We quantify the probability of attracting citations for individual publications based on age and the number of citations they have received in the past. We capture both aspects, the forgetting and the tendency to cite already popular works, in a microscopic generative model for the dynamics of scientific citation networks. We find that the probability of citing a specific paper declines with age as a power law with an exponent of $\alpha \sim -1.4$. Whenever a paper in its early years can be characterized by a scaling exponent above a critical value, $\alpha_c$, the paper is likely to become "ever-lasting". We validate the model with out-of-sample predictions, with an accuracy of up to 90% (AUC $\sim 0.9$). The model also allows us to estimate an expected citation landscape of the future, predicting that 95% of papers cited in 2050 have yet to be published. The exponential growth of articles, combined with a power-law type of forgetting and papers receiving fewer and fewer citations on average, suggests a worrying tendency toward information overload and raises concerns about scientific publishing's long-term sustainability., Comment: 11 pages, 4 figures

The Covid-19 pandemic drastically emphasized the fragility of national and international supply networks (SNs),leading to significant supply shortages of essential goods for people, such as food and medical equipment. Severe disruptions that propagate along complex SNs can expose the population of entire regions or even countries to these risks. A lack of both, data and quantitative methodology, has hitherto hindered us to empirically quantify the vulnerability of the population to disruptions. Here we develop a data-driven simulation methodology to locally quantify actual supply losses for the population that result from the cascading of supply disruptions. We demonstrate the method on a large food SN of a European country including 22,938 business premises, 44,355 supply links and 116 local administrative districts. We rank the business premises with respect to their criticality for the districts' population with the proposed systemic risk index, SRIcrit, to identify around 30 premises that -- in case of their failure -- are expected to cause critical supply shortages in sizable fractions of the population. The new methodology is immediately policy relevant as a fact-driven and generalizable crisis management tool. This work represents a starting point for quantitatively studying SN disruptions focused on the well-being of the population., Comment: *The authors acknowledge the equal contributions of WS and CD

For centuries, national economies created wealth by engaging in international trade and production. The resulting international supply networks not only increase wealth for countries, but also create systemic risk: economic shocks, triggered by company failures in one country, may propagate to other countries. Using global supply network data on the firm-level, we present a method to estimate a country's exposure to direct and indirect economic losses caused by the failure of a company in another country. We show the network of systemic risk-flows across the world. We find that rich countries expose poor countries much more to systemic risk than the other way round. We demonstrate that higher systemic risk levels are not compensated with a risk premium in GDP, nor do they correlate with economic growth. Systemic risk around the globe appears to be distributed more unequally than wealth. These findings put the often praised benefits for developing countries from globalized production in a new light, since they relate them to the involved risks in the production processes. Exposure risks present a new dimension of global inequality, that most affects the poor in supply shock crises. It becomes fully quantifiable with the proposed method., Comment: 19 pages, 15 figures

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., Comment: 19 pages, 11 figures

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.

We propose a Hamiltonian approach to reproduce the relevant elements of the centuries-old Subak irrigation system in Bali, showing a cluster-size power-law distribution. The resulting system presents two equilibria. The first balance is between energy and entropy contributions. The second lies in the energy contribution: a local Potts-type interaction and a long-range anti-ferromagnetic one without attenuation. Finite-size scaling analysis shows that as a result of the second balance, the transition balancing energy and entropy contributions for low values of the antiferromagnetic contribution is absorbed by the transition for high values of that contribution as the system size increases. The system thus presents only a weak-first order phase transition at the thermodynamic limit. This extends the Hamiltonian framework to a new domain of coupled human-environmental interactions., Comment: 6 pages, 4 figures

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]., Comment: 8 pages, 7 figures

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., Comment: abstract slightly shortened in preview due to maximum character count of arXiv abstracts

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., Comment: 26 pages, 30 figures

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., Comment: 10 pages, 7 figures

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., Comment: 15 pages, 12 figures

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., Comment: 9 pages, 3 figures, 10 pages of supplementary material, accepted to Nature Communications

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., Comment: 2 figures; figure one with 2, figure 2 with 3 panes

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., Comment: 14 pages, 6 figures

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., Comment: 20 pages, 3 figures, 3 appendices

Many countries faced challenges in their health workforce supply like impending retirement waves, negative population growth, or a suboptimal distribution of resources across medical sectors even before the pandemic struck. Current quantitative models are often of limited usability as they either require extensive individual-level data to be properly calibrated or (in the absence of such data) become too simplistic to capture key demographic changes or disruptive epidemiological shocks like the SARS-CoV-2 pandemic. We propose a novel population-dynamical and stock-flow-consistent approach to health workforce supply forecasting that is complex enough to address dynamically changing behaviors while requiring only publicly available timeseries data for complete calibration. We demonstrate the usefulness of this model by applying it to 21 European countries to forecast the supply of generalist and specialist physicians until 2040, as well as how Covid-related mortality and increased healthcare utilization might impact this supply. Compared to staffing levels required to keep the physician density constant at 2019 levels, we find that in many countries there is indeed a significant trend toward decreasing density for generalist physicians at the expense of increasing densities for specialists. The trends for specialists are exacerbated in many Southern and Eastern European countries by expectations of negative population growth. Compared to the expected demographic changes in the population and the health workforce, we expect a limited impact of Covid on these trends even under conservative modelling assumptions. It is of the utmost importance to devise tools for decision makers to influence the allocation and supply of physicians across fields and sectors to combat these imbalances.

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., Comment: 12 pages, 9 figures

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.

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.

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., Comment: 25 pages