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Ties that bind: Network redistributive pressure and economic decisions in village economies

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  • Di Falco, Salvatore
  • Feri, Francesco
  • Pin, Paolo
  • Vollenweider, Xavier

Abstract

In this paper, we identify economic implications of the pressure to share resources within a social network. Through a set of field experiments in rural Tanzania we randomly increased the expected harvest of the treatment group by the assignment of an improved and much more productive variety of maize. We find that treated individuals reduced the interaction with their social network by discussing with fewer people in the village the type of seed they received, so as not to reveal their improved seed. We also find that treated individuals reduced labor input by asking fewer people in the village to work on their farm during the growing season and, as a result, obtained fewer actual harvest gains.

Suggested Citation

  • Di Falco, Salvatore & Feri, Francesco & Pin, Paolo & Vollenweider, Xavier, 2018. "Ties that bind: Network redistributive pressure and economic decisions in village economies," Journal of Development Economics, Elsevier, vol. 131(C), pages 123-131.
  • Handle: RePEc:eee:deveco:v:131:y:2018:i:c:p:123-131
    DOI: 10.1016/j.jdeveco.2017.12.001
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    Cited by:

    1. Aucejo, Esteban M. & Coate, Patrick & Fruehwirth, Jane Cooley & Kelly, Sean & Mozenter, Zachary, 2018. "Teacher effectiveness and classroom composition," LSE Research Online Documents on Economics 91696, London School of Economics and Political Science, LSE Library.
    2. Alger, Ingela & Weibull, Jörgen W., 2018. "Evolutionary Models of Preference Formation," TSE Working Papers 18-955, Toulouse School of Economics (TSE).

    More about this item

    Keywords

    Networks; Field experiment; Social norms; Redistributive pressure; Tanzania;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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