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Links and Architecture in Village Networks (previously: Endogenous Network Formation and Informal Institutions in Village Economies)

Author

Listed:
  • Krishnan, P.
  • Sciubba, E.

Abstract

This paper o¤ers a bridge between the theoretical literature on endogenous network formation and the empirical work on the impact of social networks on economic performance. We provide 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 di¤ers by the architecture of the network to which one belongs.

Suggested Citation

  • Krishnan, P. & Sciubba, E., 2004. "Links and Architecture in Village Networks (previously: Endogenous Network Formation and Informal Institutions in Village Economies)," Cambridge Working Papers in Economics 0462, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0462
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    References listed on IDEAS

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    Keywords

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    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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