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Links and Architecture in Village Networks

Author

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  • Pramila Krishnan
  • Emanuela Sciubba

    (Department of Economics, Mathematics & Statistics, Birkbeck)

Abstract

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.

Suggested Citation

  • Pramila Krishnan & Emanuela Sciubba, 2006. "Links and Architecture in Village Networks," Birkbeck Working Papers in Economics and Finance 0614, Birkbeck, Department of Economics, Mathematics & Statistics.
  • Handle: RePEc:bbk:bbkefp:0614
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    References listed on IDEAS

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    Cited by:

    1. Herings, P.J.J. & Mauleon, A. & Vannetelbosch, V., 2014. "Stability of networks under level-k farsightedness," Research Memorandum 030, Maastricht University, Graduate School of Business and Economics (GSBE).
    2. Chen, Xi, 2014. "Gift-giving and Network Structure in Rural China: Utilizing Long-term Spontaneous Gift Records," IZA Discussion Papers 8642, Institute for the Study of Labor (IZA).
    3. repec:eee:wdevel:v:99:y:2017:i:c:p:1-14 is not listed on IDEAS
    4. Bet Caeyers & Stefan Dercon, 2012. "Political Connections and Social Networks in Targeted Transfer Programs: Evidence from Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 60(4), pages 639-675.
    5. de Brauw, Alan & Mueller, Valerie & Lee, Hak Lim, 2014. "The Role of Rural–Urban Migration in the Structural Transformation of Sub-Saharan Africa," World Development, Elsevier, vol. 63(C), pages 33-42.
    6. Hayley H. Chouinard & Gregmar I. Galinato & Philip R. Wandschneider, 2016. "Making Friends To Influence Others: Entry And Contribution Decisions That Affect Social Capital In An Association," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 819-834, April.
    7. Jaromir Kovarik & Marco J. van der Leij, 2011. "Risk Aversion and Social Networks," Tinbergen Institute Discussion Papers 11-072/1, Tinbergen Institute.
    8. Abay, Kibrom A. & Kahsay, Goytom A. & Berhane, Guush, 2014. "Social networks and factor markets: Panel data evidence from Ethiopia:," ESSP working papers 68, International Food Policy Research Institute (IFPRI).
    9. Yann Bramoullé & Bernard Fortin, 2009. "The Econometrics of Social Networks," Cahiers de recherche 0913, CIRPEE.
    10. Marcel Fafchamps & Alexander Moradi, 2015. "Referral and Job Performance: Evidence from the Ghana Colonial Army," Economic Development and Cultural Change, University of Chicago Press, vol. 63(4), pages 715-751.
    11. Feinberg, Yossi & Kets, Willemien, 2014. "Ranking friends," Journal of Economic Behavior & Organization, Elsevier, pages 1-9.
    12. Barr, Abigail & Dekker, Marleen & Fafchamps, Marcel, 2015. "The Formation of Community-Based Organizations: An Analysis of a Quasi-Experiment in Zimbabwe," World Development, Elsevier, vol. 66(C), pages 131-153.
    13. Gilles Grandjean, 2014. "Risk-sharing networks and farsighted stability," Review of Economic Design, Springer;Society for Economic Design, vol. 18(3), pages 191-218, September.
    14. Debebe, Z.Y., 2010. "Child labor, agricultural shocks and labor sharing in rural Ethiopia," ISS Working Papers - General Series 18702, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    15. Schmidt, Emily & Bekele, Firew, 2016. "Rural youth and employment in Ethiopia," ESSP working papers 98, International Food Policy Research Institute (IFPRI).
    16. A. Stefano Caria & Marcel Fafchamps, 2015. "Can Farmers Create Efficient Information Networks? Experimental Evidence from Rural India," CSAE Working Paper Series 2015-07, Centre for the Study of African Economies, University of Oxford.
    17. Margherita Comola & Mariapia Mendola, 2013. "The Formation of Migrant Networks," Development Working Papers 353, Centro Studi Luca d'Agliano, University of Milano.
    18. Yonatan Dinku & David Fielding & Murat Genc, 2017. "Health Shocks and Child Time Allocation Decisions by Households: Evidence from Ethiopia," Working Papers 1705, University of Otago, Department of Economics, revised Apr 2017.
    19. Matuschke, Ira, 2008. "Evaluating the impact of social networks in rural innovation systems: An overview," IFPRI discussion papers 816, International Food Policy Research Institute (IFPRI).
    20. repec:eee:wdevel:v:99:y:2017:i:c:p:122-140 is not listed on IDEAS
    21. Jaimovich, Dany, 2013. "Missing links, missing markets: Internal exchanges, reciprocity and external connections in the economic networks of Gambian villages," MPRA Paper 44080, University Library of Munich, Germany.
    22. Jaimovich, Dany, 2015. "Missing Links, Missing Markets: Evidence of the Transformation Process in the Economic Networks of Gambian Villages," World Development, Elsevier, vol. 66(C), pages 645-664.

    More about this item

    Keywords

    Endogenous network formation; social networks; rural institutions.;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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