Do economic shocks spread randomly?: A topological study of the global contagion network
Fig 3
Link formation dynamics in the global economic contagion network.
Every panel shows the path of a state transition frequency, where states refer to whether a connection exists or not. Red lines mark the observed values, solid black lines mark the average from simulated ER networks while dashed lines represent the 5 and 95 percentiles of the latter. Horizontal axes show time windows with the labels marking the initial year of the given window (e.g. the last label refers to 2006 which means that this data point represent the topological property of the contagion network estimated on the 52 quarters starting from 2006Q1. Vertical dotted lines mark those time windows in which a given crises first appears. A: Frequency of stable existing connections. B: Frequency of dissolving connections. C: Frequency of newly formed connections. D: Frequency of stable non-existing connections.