Evolution and determinants of firm-level systemic risk in local production networks

Anna Mancini, Balázs Lengyel, Riccardo Di Clemente, Giulio Cimini

Recent crises like the COVID-19 pandemic and geopolitical tensions have exposed vulnerabilities and caused disruptions of supply chains, leading to product shortages, increased costs, and economic instability. This has prompted increasing efforts to assess systemic risk, namely the effects of firm disruptions on entire economies. However, the ability of firms to react to crises by rewiring their supply links has been largely overlooked, limiting our understanding of production networks resilience. Here we study dynamics and determinants of firm-level systemic risk in the Hungarian production network from 2015 to 2022. We use as benchmark a heuristic maximum entropy null model that generates an ensemble of production networks at equilibrium, by preserving the total input (demand) and output (supply) of each firm at the sector level. We show that the fairly stable set of firms with highest systemic risk undergoes a structural change during COVID-19, as those enabling economic exchanges become key players in the economy — a result which is not reproduced by the null model. Although the empirical systemic risk aligns well with the null value until the onset of the pandemic, it becomes significantly smaller afterwards as the adaptive behavior of firms leads to a more resilient economy. Furthermore, firms’ international trade volume (being a subject of disruption) becomes a significant predictor of their systemic risk. However, international links cannot provide an unequivocal explanation for the observed trends, as imports and exports have opposing effects on local systemic risk through the supply and demand channels.

Read the full article at: arxiv.org

Exploring the social life of urban spaces through AI

Arianna Salazar-Miranda, Zhuangyuan Fan, Michael Baick, Keith N. Hampton, Fabio Duarte, Becky P. Y. Loo, Edward Glaeser, and Carlo Ratti

PNAS 122 (30) e2424662122

Urban public spaces have traditionally served as places for gathering and social connection, shaping the social fabric of cities. This study reveals important shifts in pedestrian behaviors over a 30-y period in four US public spaces. By using AI and computer vision to analyze historical and contemporary video footage, we observe an increase in walking speed and a decrease in time spent lingering, along with fewer group encounters. This trend suggests a growing perception of city streets as corridors for movement rather than spaces for social interaction. These findings highlight a changing urban dynamic, where efficiency increasingly shapes public space usage, potentially impacting social connections and the community-building role of these environments.

Read the full article at: www.pnas.org

Repairing, Reviving, and Upgrading Democracies in the Age of AI

Dirk Helbing & Sachit Mahajan 

We critically examine the evolving functionality and challenges of democracies in the age of digital transformation and artificial intelligence (AI). Contrary to notions of democracy as a static governance form, we emphasize the importance of its adaptability, but find that recent technological and institutional shifts have undermined foundational mechanisms such as decentralized decision-making, transparent information flows, and effective self-correction. Drawing from complexity science, political theory, participatory research and computational social science, we analyze how algorithmic control, surveillance capitalism, and power asymmetries have affected core democratic principles. We pay specific attention to structural changes in political representation, civic participation, and how these have affected public trust. We further discuss a set of recent, digitally assisted approaches, ranging from deliberative platforms and participatory budgeting to fair voting systems and co-creation, which can potentially restore the legitimacy of democratic systems and their resilience. By understanding democracies as dynamic, co-evolving systems, we highlight the potential of plu-ralistic design. Aligning technological progress with constitutional principles can meaningfully repair, revive and updgrade democratic systems and institutions.

Read the full article at: www.researchgate.net

The functional role of oscillatory dynamics in neocortical circuits: A computational perspective

Felix Effenberger, Pedro Carvalho, Igor Dubinin, and Wolf Singer

PNAS 122 (4) e2412830122

Neocortical circuits are characterized by complex oscillatory dynamics. Whether these oscillations serve computations or are an epiphenomenon is still debated. To answer this question, we designed a computational model of a recurrent network that allows control of oscillatory dynamics (harmonic oscillator recurrent network, HORN). When operating in an oscillatory regime, HORNs outperform nonoscillatory recurrent networks in terms of learning speed, noise tolerance, and parameter efficiency. Moreover, they closely replicate the dynamics of neuronal systems, suggesting that biological neural networks are likely to also exploit the unique properties offered by oscillatory dynamics for computing. The interference patterns provided by wave-based responses allow for a holistic representation and highly parallel encoding of both spatial and temporal relations among stimulus features.

Read the full article at: www.pnas.org

Perceived community alignment increases information sharing

Elisa C. Baek, Ryan Hyon, Karina López, Mason A. Porter & Carolyn Parkinson 

Nature Communications volume 16, Article number: 5864 (2025)

It has been proposed that information sharing, which is a ubiquitous and consequential behavior, plays a critical role in cultivating and maintaining a sense of shared reality. Across three studies, we test this theory by investigating whether or not people are especially likely to share information that they believe will be interpreted similarly by others in their social circles. Using neuroimaging data collected while people who live in the same residential community viewed brief film clips, we find that more similar neural responses across participants is associated with a greater likelihood to share content. We then test this relationship using two behavioral studies and find (1) that people are particularly likely to share content that they believe others in their social circles will interpret similarly and (2) that perceived similarity with others leads to increased sharing likelihood. In concert, our findings support the idea that people are driven to share information to create and reinforce shared understanding, which is critical to social connection.

Read the full article at: www.nature.com