nep-net New Economics Papers
on Network Economics
Issue of 2015‒06‒13
eleven papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Do Nobel laureates change their patterns of collaboration following prize reception? By Ho Fai Chan; Ali Sina Önder; Benno Torgler
  2. Peer effects in collaborative content generation: The evidence from German Wikipedia By Slivko, Olga
  3. Do Parental Networks Pay Off? Linking Children's Labor-Market Outcomes to their Parents' Friends By Plug, Erik; van der Klaauw, Bas; Ziegler, Lennart
  4. Peers at Work - a Brief Overview of the Literature on Peer Effects at the Workplace and the Policy Implications By Clara Welteke
  5. Defuse the Bomb: Rewiring Interbank Networks By Matteo Chinazzi; Stefano Pegoraro; Giorgio Fagiolo
  6. Multiplex interbank networks and systemic importance: An application to European data By Aldasoro, Iñaki; Alves, Iván
  7. The Econometrics of Networks: A Review By Daniel Felix Ahelegbey
  8. Offline Effects of Online Connecting: The Impact of Broadband Diffusion on Teen Fertility Decisions By Guldi, Melanie; Herbst, Chris M.
  9. Networks and the dynamics of firms’ export portfolio By Juan de Lucio; Raúl Mínguez; Asier Minondo; Francisco Requena
  10. Women Leaders and Social Performance: Evidence from Financial Cooperatives in Senegal By Anaïs A Périlleux; Ariane Szafarz
  11. Identifying interbank loans, rates, and claims networks from transactional data By León, C.; Cely, Jorge; Cadena, Carlos

  1. By: Ho Fai Chan; Ali Sina Önder; Benno Torgler
    Abstract: We investigate whether Nobel laureates’ collaborative activities undergo a negative change following prize reception by using publication records of 198 Nobel laureates and analyzing their coauthorship patterns before and after the Nobel Prize. The results overall indicate less collaboration with new coauthors post award than pre award. Nobel laureates are more loyal to collaborations that started before the Prize: looking at coauthorship drop-out rates, we find that these differ significantly between coauthorships that started before the Prize and coauthorships after the Prize. We also find that the greater the intensity of pre-award cooperation and the longer the period of pre-award collaboration, the higher the probability of staying in the coauthor network after the award, implying a higher loyalty to the Nobel laureate.
    Keywords: Nobel Prize; Nobel laureate; Award; Network; Coauthors; Recognition; Chemistry; Physics; Physiology or Medicine
    Date: 2015–06
  2. By: Slivko, Olga
    Abstract: On Wikipedia, the largest online encyclopedia, editors who contribute to the same articles and exchange comments on articles' talk pages work in collaborative manner engaging in communication about their work. Thus they can be considered as peers who are likely to influence each other. In this article, I examine whether the activity of these peers, measured by the average amount of peer contributions or by the number of peers, yields spillovers to the amount of individual contributions. The partially overlapping group structure allows to identify peer effects and to use the number of the indirect peers as an instrument for the activity and the number of direct peers. The results show that, while controlling for observable editor and peer characteristics, an increase in the monthly average peer contribution by 1 per cent increases the amount of individual monthly contributions to Wikipedia (among individuals that contribute to Wikipedia every month) by about 0.44 per cent. Similarly, spillovers coming from the number of peers yield a positive effect of 0.17 per cent per article to 0.05 per cent for overall monthly contributions to Wikipedia.
    Keywords: Peer Effects,Network of Editors,Direct and Indirect Peers,User-generated Content,Wikipedia
    JEL: D83 D85
    Date: 2015
  3. By: Plug, Erik (University of Amsterdam); van der Klaauw, Bas (VU University Amsterdam); Ziegler, Lennart (University of Amsterdam)
    Abstract: This paper examines whether children are better off if their parents have stronger social networks. Using data on high-school friendships of parents, we analyze whether the number and characteristics of friends affect the labor-market outcomes of children. While parental friendships formed in high school appear long lasting, we find no significant impact on their children's occupational choices and earnings prospects. These results do not change when we account for network endogeneity, network persistency and network measurement error. Only when children enter the labor market, we find that friends of parents have a marginally significant but small influence on the occupational choice of children.
    Keywords: social networks, occupational choice, informal job search, intergenerational effects
    JEL: A14 J24 J62
    Date: 2015–05
  4. By: Clara Welteke
    Abstract: Individuals do not exist in isolation but are embedded within networks of relationships, such as families, coworkers, neighbors, friendships or socioeconomic groups. While there is a long tradition in sociology and anthropology focusing on theimportance of social structure, norms and culture, economists have long ignored social influences on individual behavior. Even though social influences may play an important role in the evaluation of policies, economic evaluations are typicallyfocused on the central question how individuals independently respond to financial incentives. However, economic reforms or the introduction of new policy instruments are likely to affect individuals not only directly by the change in financial incentives, but also indirectly by a change in the behavior of the social environment. At the workplace, one can distinguish four contexts where peer effects may be relevant factors in explaining the observed outcomes; these are (a) job search and employment probabilities; (b) fertility, parental leave and female labor supply; (c) productivity and work place behavior; and (d) retirement and pension plan decisions. Consequently, it is of large importance to understand and predictsocial interaction effects in these four areas of research and comprehend the implications for economic policy. In the following, I will give an overview of the existing literature in each of the contexts where peer effects at work may evolve, after briefly discussing the challenges associated with the empirical analysis of peer effects.
    Date: 2015
  5. By: Matteo Chinazzi; Stefano Pegoraro; Giorgio Fagiolo
    Abstract: In this paper we contribute to the debate on macro-prudential regulation by assessing which structure of the nancial system is more resilient to exogenous shocks, and which conditions, in terms of balance sheet compositions, capital requirements and asset prices, guarantee the higher degree of stability. We use techniques drawn from the theory of complex networks to show how contagion can propagate under dierent scenarios when the topology of the nancial system, the characteristics of the nancial institutions, and the regulations on capital are let vary. First, we benchmark our results using a simple model of contagion as the one that has been popularized by Gai and Kapadia (2010). Then, we provide a richer model in which both short- and long-term interbank markets exist. By doing so, we study how liquidity shocks (de)stabilize the system under dierent market conditions. Our results demonstrate how connectivity, the topology of the markets and the characteristics of the nancial institutions interact in determining the stability of the system.
    Keywords: financial networks, systemic risk, contagion, regulation, network topology
    Date: 2015–03–06
  6. By: Aldasoro, Iñaki; Alves, Iván
    Abstract: Research on interbank networks and systemic importance is starting to recognise that the web of exposures linking banks balance sheets is more complex than the single-layer-of-exposure paradigm. We use data on exposures between large European banks broken down by both maturity and instrument type to characterise the main features of the multiplex structure of the network of large European banks. This multiplex network presents positive correlated multiplexity and a high similarity between layers, stemming both from standard similarity analyses as well as a core-periphery analyses of the different layers. We propose measures of systemic importance that fit the case in which banks are connected through an arbitrary number of layers (be it by instrument, maturity or a combination of both). Such measures allow for a decomposition of the global systemic importance index for any bank into the contributions of each of the sub-networks, providing a useful tool for banking regulators and supervisors. We use the dataset of exposures between large European banks to illustrate the proposed measures.
    Keywords: interbank networks,systemic importance,multiplex networks
    JEL: G21 D85 C67
    Date: 2015
  7. By: Daniel Felix Ahelegbey (Department of Economics, University of Venice Cà Foscari)
    Abstract: Recent advances in empirical finance has seen a growing interest in the application of network models to analyse contagion, spillover effects and risk propagation channels in the system. While interconnectivity among financial institutions have been widely studied, only a few papers review networks in finance and they do not focus on the econometrics aspects. This paper surveys the state of the arts for statistical inference and application of networks from a multidisciplinary perspective, and specifically in the context of systemic risk. We contribute to the literature on network econometrics by relating network models to multivariate analysis with potential applications in econometrics and finance.
    Keywords: Bayesian inference, Graphical models, Model selection, Systemic risk.
    JEL: C11 C15 C52 G01 G17
    Date: 2015
  8. By: Guldi, Melanie (University of Central Florida); Herbst, Chris M. (Arizona State University)
    Abstract: Broadband (high-speed) internet access expanded rapidly from 1999 to 2007. This expansion is associated with higher economic growth and labor market activity. In this paper, we examine whether the rollout also affected the social connections teens make. Specifically, we look at the relationship between increased broadband access and teen fertility. We hypothesize that increasing access to high-speed internet can influence fertility decisions by changing the size of the market as well as increasing the information available to participants in the market. We seek to understand both the overall effect of broadband internet on teen fertility as well as the mechanisms underlying this effect. Our results suggest that increased broadband access explains at least thirteen percent of the decline in the teen birth rate between 1999 and 2007. Although we focus on social markets, this work contributes more broadly to an understanding of how new technology interacts with existing markets.
    Keywords: fertility, birth rates, broadband, new media
    JEL: J13 J18
    Date: 2015–05
  9. By: Juan de Lucio (Banco de España); Raúl Mínguez (Cámara de España); Asier Minondo (Deusto Business School); Francisco Requena (University of Sheffield)
    Abstract: We use network-analysis tools to identify communities in the web of exporters' destinations. Our network-based community measure is purely outcome-based; it captures multilateral rather than bilateral dependence across countries; and it can be calculated at the industry level. We next use our network-based community measure as a predictor of additional countries chosen by firms expanding their export destinations portfolios. Using data on new Mexican exporters, the probability of choosing a new export destination doubles if it belongs to the same community of any of the firm’s previous destinations. The introduction of the network-based community variable improves the accuracy of the model by up to 19% relative to a model that only includes gravity variables. Industry-specific communities and general communities play similar roles in determining the dynamics of Mexican exporters' country portfolios.
    Keywords: export market, network analysis, modularity, extended gravity, Mexico.
    JEL: F1
    Date: 2015–06
  10. By: Anaïs A Périlleux; Ariane Szafarz
    Abstract: How do women leaders such as board members and top managers influence the social performance of organizations? This paper addresses the question by exploiting a unique database from a Senegalese network of 36 financial cooperatives. We scrutinize the loan-granting decisions, made jointly by the locally elected board and the top manager assigned by the central union of the network. Our findings are threefold. First, female-dominated boards favor social orientation. Second, female managers tend to align their strategy with local boards' preferences. Third, the central union tends to assign male managers to female-dominated boards, probably to curb the boards’ social orientation.
    Keywords: Gender; Governance; Leadership; Microfinance; Africa; Senegal
    JEL: G20 J54 O16 G34 O55 L31
    Date: 2015–05–27
  11. By: León, C.; Cely, Jorge; Cadena, Carlos
    Abstract: We identify interbank (i.e. non-collateralized) loans from the Colombian large-value payment system by implementing Furfine’s method. After identifying interbank loans from transactional data we obtain the interbank rates and claims without relying on financial institutions’ reported data. Contrasting identified loans with those consolidated from financial institutions’ reported data suggests the algorithm performs well, and it is robust to changes in its setup. The weighted average rate implicit in transactional data matches local interbank rate benchmarks strictly. From identified loans we also build the interbank claims network. The three main outputs (i.e. the interbank loans, the rates, and the claims networks) are valuable for examining and monitoring the money market, for contrasting data reported by financial institutions, and as inputs in models of financial contagion and systemic risk.
    Keywords: Furfine's method; interbank; IBR; TIB
    JEL: E42 E44
    Date: 2015

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