The Economic Consequences of Social Network Structure

Working Paper: CEPR ID: DP10406

Authors: Matthew O. Jackson; Brian Rogers; Yves Zenou

Abstract: We survey the literatures on the economic consequences of the structure of social networks. We develop a taxonomy of 'macro' and 'micro' characteristics of social inter-action networks and discuss both the theoretical and empirical findings concerning the role of those characteristics in determining learning, diffusion, decisions, and resulting behaviors. We also discuss the challenges of accounting for the endogeneity of networks in assessing the relationship between the patterns of interactions and behaviors.

Keywords: centrality measures; contagion; diffusion; endogeneity; homophily; network formation; social economics; social learning; social networks

JEL Codes: C72; D85; L14; Z13


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
social connections (Z13)criminal behavior (K42)
network segregation (D85)disparate economic outcomes (J79)
network density (D85)rate of diffusion (C69)
social structure (Z13)cooperative behaviors (C71)

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