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Network Structure and the Aggregation of Information: Theory and Evidence from Indonesia

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  • Vivi Alatas

    ()

  • Abhijit Banerjee

    ()

  • Arun G Chandrasekhar

    ()

  • Rema Hanna

    ()

  • BENJAMIN A Olken

    ()

Abstract

A unique data-set from Indonesia is analysed to understand what individuals know about the income distribution in their village to test theories such as Jackson and Rogers (2007) that link information aggregation in networks to the structure of the network. The observed patterns are consistent with a basic diffusion model: more central individuals are better informed and individuals are able to better evaluate the poverty status of those to whom they are more socially proximate. [BREAD Working Paper No. 354]. URL:[http://ipl.econ.duke.edu/bread/papers/working/354.pdf].

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:5106.

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Date of creation: Aug 2012
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Handle: RePEc:ess:wpaper:id:5106

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Related research

Keywords: Networks; Diffusion of information; Targeting; Development; Indonesia; poverty status; socially proximate; cross-village patterns; villagers; community; jobs; microfinance; and public health; decentralization; public goods;

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References

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  1. Timothy G. Conley & Christopher R. Udry, 2010. "Learning about a New Technology: Pineapple in Ghana," American Economic Review, American Economic Association, vol. 100(1), pages 35-69, March.
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  13. Mueller-Frank, Manuel, 2013. "A general framework for rational learning in social networks," Theoretical Economics, Econometric Society, vol. 8(1), January.
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  16. Jackson Matthew O. & Rogers Brian W., 2007. "Relating Network Structure to Diffusion Properties through Stochastic Dominance," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 1-16, February.
  17. Vivi Alatas & Abhijit Banerjee & Rema Hanna & Benjamin A. Olken & Julia Tobias, 2012. "Targeting the Poor: Evidence from a Field Experiment in Indonesia," American Economic Review, American Economic Association, vol. 102(4), pages 1206-40, June.
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Cited by:
  1. Michael Clemens & Erwin Tiongson, 2012. "Split Decisions: Family finance when a policy discontinuity allocates overseas work," CReAM Discussion Paper Series 1234, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Mastrobuoni, Giovanni, 2014. "The Value of Connections: Evidence from the Italian-American Mafia," IZA Discussion Papers 7925, Institute for the Study of Labor (IZA).

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