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Testing Unilateral and Bilateral Link Formation

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  • Marcel Fafchamps

    ()

  • Margherita Comola

    ()

Abstract

The literature has shown that network architecture depends crucially on whether links are formed unilaterally or bilaterally, that is, on whether the consent of both nodes is required for a link to be formed. They propose a test of whether network data is best seen as an actual link or willingness to link and, in the latter case, whether this link is generated by an unilateral o rbilateral link formation process. They illustrate this test using survey answers to a risk-sharing question inTanzania. They find that the bilateral link formation model fits the data better than the unilateral model, but the data are best interpreted as willingness to link rather than an actual link. They then expand the model to include self-censoring and find that models with self-censoring fit the data best. [Working Paper No. 236]

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:2797.

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Date of creation: Aug 2010
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Handle: RePEc:ess:wpaper:id:2797

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Keywords: network architecture; pairwise stability; risk sharing;

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References

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Cited by:
  1. repec:hal:wpaper:halshs-00585968 is not listed on IDEAS
  2. Joost Vandenbossche & Thomas Demuynck, 2013. "Network Formation with Heterogeneous Agents and Absolute Friction," Computational Economics, Society for Computational Economics, vol. 42(1), pages 23-45, June.
  3. Marcel Fafchamps & Margherita Comola, 2010. "Are Gifts and Loans between Households Voluntary?," Economics Series Working Papers CSAE WPS/2010-20, University of Oxford, Department of Economics.
  4. Yann Bramoullé & Bernard Fortin, 2009. "The Econometrics of Social Networks," Cahiers de recherche 0913, CIRPEE.
  5. Margherita Comola & Mariapia Mendola, 2013. "The Formation of Migrant Networks," Development Working Papers 353, Centro Studi Luca d\'Agliano, University of Milano.
  6. repec:hal:wpaper:halshs-00564894 is not listed on IDEAS
  7. Landmann, Andreas & Vollan, Björn & Frölich, Markus, 2011. "Saving, Microinsurance: Why You Should Do Both or Nothing. A Behavioral Experiment on the Philippines," Proceedings of the German Development Economics Conference, Berlin 2011 51, Verein für Socialpolitik, Research Committee Development Economics.

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