Working Paper: CEPR ID: DP6787
Authors: Pramila Krishnan; Emanuela Sciubba
Abstract: In this paper we test the implications of a model of network formation 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.
Keywords: Endogenous Network Formation; Rural Institutions; Social Networks
JEL Codes: D85; O12; O17; Z13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| number of links (Y80) | agricultural output (Q11) |
| network architecture (D85) | economic outcomes (F61) |
| heterogeneity of network partners (D85) | likelihood of forming symmetric networks (D85) |
| likelihood of forming symmetric networks (D85) | network architecture (D85) |