About

The "Network analysis of economic and financial resilience" project is a joint research endeavor by the IMT School of Advanced Studies, the Scuola Normale Superiore, and the Scuola Superiore Sant'Anna within the PRO3 2021-2023 University joint program.

Recent global crises have highlighted the systemic dimension of risk in financial, economic and health systems, largely due to the interconnections among the underlying elements. Network Theory offers quantitative tools to reconstruct those interconnections from (big) data, analyse the properties of the resulting complex structures, and study their impact on systemic risk. This project aims on the one hand at developing novel quantitative tools for the data-driven analysis of systemic risk on complex networks, and on the other hand at using those methods for the study of financial stability and economic resilience. The main domains of application will be the structural impact of COVID-19 on networks of international and inter-firm trade and the propagation of shocks in financial and inter-bank networks. The project will require a combination of design of theoretical models of complex networks within the framework of statistical physics, empirical data analysis with econometric and machine learning methods, and derivation of implications for policymaking and financial risk management.