Bridge closure in the road network of Lombardy: a spatio-temporal analysis of the socio-economic impacts

This paper introduces a methodology to evaluate the socio-economic impacts of closure for maintenance of one or more infrastructures of a large and complex road network. Motivated by a collaboration with Regione Lombardia, we focus on a subset of bridges in the region, although we aim at developing a method scalable to all road infrastructures of the regional network, consisting of more than 10,000 tunnels, bridges and overpasses. The final aim of the endeavor is to help decision-makers in prioritizing their interventions for maintaining and repairing infrastructure segments. We develop two different levels of impact assessment, both providing a unique global score for each bridge closure and investigating its spatio-temporal effects on mobility. We take advantage of a functional data analysis approach enhanced by a complex network theory perspective, thus modelling the roads of Lombardy as a network in which weights attributed to the edges are functional data. Results reveal the most critical bridges of Lombardy; moreover, for each bridge closure, the most impactful hours of the day and the most impacted municipalities of the region are identified. The proposed approach develops a flexible and scalable method for monitoring infrastructures of large and complex road networks.

Sensitivity analysis for unobserved confounding in causal mediation analysis allowing for effect modification, censoring and truncation

Causal mediation analysis is used to decompose the total effect of an exposure on an outcome into an indirect effect, taking the path through an intermediate variable, and a direct effect. To estimate these effects, strong assumptions are made about unconfoundedness of the relationships between the exposure, mediator and outcome. These assumptions are difficult to verify in a given situation and therefore a mediation analysis should be complemented with a sensitivity analysis to assess the possible impact of violations. In this paper we present a method for sensitivity analysis to not only unobserved mediator-outcome confounding, which has largely been the focus of previous literature, but also unobserved confounding involving the exposure. The setting is estimation of natural direct and indirect effects based on parametric regression models. We present results for combinations of binary and continuous mediators and outcomes and extend the sensitivity analysis for mediator-outcome confounding to cases where the continuous outcome variable is censored or truncated. The proposed methods perform well also in the presence of interactions between the exposure, mediator and observed confounders, allowing for modeling flexibility as well as exploration of effect modification. The performance of the method is illustrated through simulations and an empirical example.

Effective transfer entropy to measure information flows in credit markets

In this paper we propose to study the dynamics of financial contagion between the credit default swap (CDS) and the sovereign bond markets through effective transfer entropy, a model-free methodology which enables to overcome the required hypotheses of classical price discovery measures in the statistical and econometric literature, without being restricted to linear dynamics. By means of effective transfer entropy we correct for small sample biases which affect the traditional Shannon transfer entropy, as well as we are able to conduct inference on the estimated directional information flows. In our empirical application, we analyze the CDS and bond market data for eight countries of the European Union, and aim to discover which of the two assets is faster at incorporating the information on the credit risk of the underlying sovereign. Our results show a clear and statistically significant prominence of the bond market for pricing the sovereign credit risk, especially during the crisis period. During the post-crisis period, instead, a few countries behave dissimilarly from the others, in particular Spain and the Netherlands.