Despite foreign reserves' strategic asset allocation relies mainly on Modern Portfolio Theory (MPT), the unique characteristics of central banks obliges them to articulate and reconcile typical optimization procedures with reserves' management objectives such as providing confidence regarding...

This paper employs network analysis to study world trade from 1995 to 2014. We focus on the main connective features of the world trade network (WTN) and their dynamics. Results suggest that countries' efforts to attain the benefits of trade have resulted in an intertwined network that is...

Global trading activity for different types of goods is mapped using network analysis, comparing the mid-1990s with recent years. Variations in trade patterns through time are described and the rise of new players in different sectors is documented. Subsequently, some features of the integration...

Since correlation may be interpreted as a measure of the influence across time‐series, it may be conveniently mapped into a distance and into a weighted adjacency matrix. Based on such matrix, network theory has attempted to filter out the noise in correlation matrices by extracting the...

Financial institutions heterogeneity, a high degree of dissimilarity across multiple dimensions, including business focuses, correlated asset holdings, capital structures, and funding sources, reduces systemic risk. We empirically test this hypothesis using a bank holding company (BHC) level...