Exponential random graph models for the Japanese bipartite network of banks and firms

We use the exponential random graph models to understand the network structure and its generative process for the Japanese bipartite network of banks and firms. One of the well-known and simple models of the exponential random graph is the Bernoulli model which shows that the links in the bank–firm network are not independent from each other. Another popular exponential random graph model, the two-star model, indicates that the bank–firms are in a state where the macroscopic variables of the system can show large fluctuations. Moreover, the presence of high fluctuations reflects a fragile nature of the bank–firm network.