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Links and Architecture in Village Networks

  • Pramila Krishnan
  • Emanuela Sciubba

    (Department of Economics, Mathematics & Statistics, Birkbeck)

This paper provides a theoretical framework of endogenous network formation that yields testable predictions for the network architectures generated by a particular informal institution common in village economies. We test the implications of the model on data from rural Ethiopia. In contrast to the current literature, we demonstrate the critical role of both number of links and architecture in determining the impact of social networks on outcomes. Social capital matters, but its impact differs by the architecture of the network to which one belongs.

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Paper provided by Birkbeck, Department of Economics, Mathematics & Statistics in its series Birkbeck Working Papers in Economics and Finance with number 0614.

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Date of creation: Nov 2006
Date of revision:
Handle: RePEc:bbk:bbkefp:0614
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