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

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Listed:
  • 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].

Suggested Citation

  • Vivi Alatas & Abhijit Banerjee & Arun G Chandrasekhar & Rema Hanna & BENJAMIN A Olken, 2012. "Network Structure and the Aggregation of Information: Theory and Evidence from Indonesia," Working Papers id:5106, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:5106
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    References listed on IDEAS

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    Citations

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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. Matthew O. Jackson, 2014. "Networks in the Understanding of Economic Behaviors," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 3-22, Fall.
    3. Drago, Francesco & Mengel, Friederike & Traxler, Christian, 2015. "Compliance Behavior in Networks: Evidence from a Field Experiment," IZA Discussion Papers 9443, Institute for the Study of Labor (IZA).
    4. Giovanni Mastrobuoni, 2013. "The Value of Connections: Evidence from the Italian-American Mafia," Carlo Alberto Notebooks 335, Collegio Carlo Alberto.
    5. Christophe Muller, 2017. "Ethnic Horizontal Inequity in Indonesia," AMSE Working Papers 1715, Aix-Marseille School of Economics, Marseille, France.
    6. Perkins, Jessica M. & Subramanian, S.V. & Christakis, Nicholas A., 2015. "Social networks and health: A systematic review of sociocentric network studies in low- and middle-income countries," Social Science & Medicine, Elsevier, vol. 125(C), pages 60-78.
    7. Arun Advani & Bansi Malde, 2014. "Empirical methods for networks data: social effects, network formation and measurement error," IFS Working Papers W14/34, Institute for Fiscal Studies.
    8. Elsner, Benjamin & Narciso, Gaia & Thijssen, Jacco J. J., 2013. "Migrant Networks and the Spread of Misinformation," IZA Discussion Papers 7863, Institute for the Study of Labor (IZA).
    9. Emily Breza & Arun G. Chandrasekhar, 2015. "Social Networks, Reputation and Commitment: Evidence from a Savings Monitors Experiment," NBER Working Papers 21169, National Bureau of Economic Research, Inc.

    More about this item

    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;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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