Spectral influence in networks: an application to input-output analysis

Abstract

This paper introduces the concepts of spectral influence and spectral cyclicality, both derived from the largest eigenvalue of a graph’s adjacency matrix. These two novel centrality measures capture both diffusion and interdependence from a local and global perspective respectively. We propose a new clustering algorithm that identifies communities with high cyclicality and interdependence, allowing for overlaps. To illustrate our method, we apply it to input-output analysis within the context of the Moroccan economy.