MAURICIO A. VALLE and FELIPE URBINA

Advances in Complex SystemsVol. 25, No. 04, 2250006 (2022)

We modeled the stocks of the financial system as a set of many interacting like spins derived from binary daily returns. From the empirical observation of these returns, we used a Boltzmann machine to infer a distribution of states equivalent to a maximum entropy distribution. This model describes the interaction couplings between each stock pair in the system, which can be considered a complete network with 𝑁(𝑁−1)/2 couplings. We then engage in a coupling removal process to find a critical graph that can describe the observed states of the system with the minimum number of edges. We interpret the critical graph as the backbone of the system, and it allows us to evaluate the importance of markets in their relation to others in the system. We also found that the structure of this critical graph is highly variable over time and appears to be dependent on the level of entropy of the system.

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Nate Breznau, et al.

PNAS 119 (44) e2203150119

Will different researchers converge on similar findings when analyzing the same data? Seventy-three independent research teams used identical cross-country survey data to test a prominent social science hypothesis: that more immigration will reduce public support for government provision of social policies. Instead of convergence, teams’ results varied greatly, ranging from large negative to large positive effects of immigration on social policy support. The choices made by the research teams in designing their statistical tests explain very little of this variation; a hidden universe of uncertainty remains. Considering this variation, scientists, especially those working with the complexities of human societies and behavior, should exercise humility and strive to better account for the uncertainty in their work.

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