Fractal and multifractal analysis of complex networks: Estonian network of payments

TL;DR

This paper investigates the fractal and multifractal properties of Estonia's large-scale economic payment network, revealing multifractality and its implications for understanding economic complexity.

Contribution

It introduces the first analysis of multifractality in a complex payment network, applying fractal and multifractal methods to economic data.

Findings

Multifractality exists in the Estonian payment network

The network exhibits complex scaling behavior

Implications for economic system analysis

Abstract

Complex networks have gained much attention from different areas of knowledge in recent years. Particularly, the structures and dynamics of such systems have attracted considerable interest. Complex networks may have characteristics of multifractality. In this study, we analyze fractal and multifractal properties of a novel network: the large scale economic network of payments of Estonia, where companies are represented by nodes and the payments done between companies are represented by links. We present a fractal scaling analysis and examine the multifractal behavior of this network by using a sandbox algorithm. Our results indicate the existence of multifractality in this network and consequently, the existence of multifractality in the Estonian economy. To the best of our knowledge, this is the first study that analyzes multifractality of a complex network of payments.