|
on Network Economics |
| By: | Sergio Currarini; Carmen Marchiori; Alessandro Tavoni |
| Abstract: | Local interactions and network structures appear to be a prominent feature of many environmental problems. This paper discusses a wide range of issues and potential areas of application, including the role of relational networks in the pattern of adoption of green technologies, common pool resource problems characterized by a multiplicity of sources, the role of social networks in multi-level environmental governance, infrastructural networks in the access to and use of natural resources such as oil and natural gas, the use of networks to describe the internal structure of inter-country relations in international agreements, and the formation of bilateral “links” in the process of building up an environmental coalition. For each of these areas, we examine why and how network economics would be an effective conceptual and analytical tool, and discuss the main insights that we can foresee. |
| Keywords: | networks; environmental externalities; technological diffusion; gas pipelines; common-pool-resources; multi-level governance; coalitions |
| JEL: | N0 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:63951&r=net |
| By: | Andrew B. Bernard; Andreas Moxnes; Yukiko U. Saito |
| Abstract: | This paper examines the importance of buyer-supplier relationships, geography and the structure of the production network in firm performance. We develop a simple model where firms can outsource tasks and search for suppliers in different locations. Low search and outsourcing costs lead firms to search more and find better suppliers. This in turn drives down the firm’s marginal production costs. We test the theory by exploiting the opening of a high-speed (Shinkansen) train line in Japan which lowered the cost of passenger travel but left shipping costs unchanged. Using an exhaustive dataset on firms’ buyer-seller linkages, we find significant improvements in firm performance as well as creation of new buyer-seller links, consistent with the model. |
| Keywords: | production networks; trade; productivity; infrastructure |
| JEL: | D85 F14 L10 L14 R12 |
| Date: | 2016–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:67664&r=net |
| By: | Ushchev, Philip; Zenou, Yves |
| Abstract: | We develop a product-differentiated model where the product space is a network defined as a set of varieties (nodes) linked by their degrees of substitutability (edges). We also locate consumers into this network, so that the location of each consumer (node) corresponds to her “ideal” variety. We show that, even though prices need not to be strategic complements, there exists a unique Nash equilibrium in the price game among firms. Equilibrium prices are determined by both firms’ sign-alternating Bonacich centralities and the average willingness to pay across consumers. They both hinge on the network structure of the firm-product space. We also investigate how local product differentiation and the spatial discount factor affect the equilibrium prices. We show that these effects non-trivially depend on the network structure. In particular, we find that, in a star-shaped network, the firm located in the star node does not always enjoy higher monopoly power than the peripheral firms. |
| Keywords: | Networks, Product Variety, Monopolistic Competition, Spatial Competition, Research Methods/ Statistical Methods, D43, L11, L13, |
| Date: | 2016–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemet:244535&r=net |
| By: | Silvio Schumacher |
| Abstract: | This paper provides an empirical analysis of the network characteristics of two interrelated interbank money markets and their impact on overall market conditions. Based on transaction data from the unsecured and secured Swiss franc money markets, the trading network structures are assessed before, during and after the financial market crisis. It can be shown that banks in the unsecured market are connected to a lower number of counterparties but rely heavily on reciprocal and clustered trading relationships. The corresponding network structure likely favored the exchange of liquidity prior to the financial market crisis but also might have led to a lower resilience of the unsecured market. There is empirical evidence that conditions in both sub-markets were significantly driven by the individual network position of banks. The network topology likely affected the shift observed from unsecured to secured lending and the increase in risk premia for unsecured lending during the financial market crisis. This paper therefore provides further evidence on the functioning of interbank money markets and, especially, on the impact of market participants interconnectedness. |
| Keywords: | Repo transaction, unsecured interbank money market, financial market turmoil, financial stability, Switzerland |
| JEL: | E42 E43 E58 G01 G12 G21 L14 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:snb:snbwpa:2016-12&r=net |
| By: | SHIMAMOTO Daichi; TODO Yasuyuki; Yu Ri KIM; Petr MATOUS |
| Abstract: | Utilizing a randomized controlled trial (RCT) in traditional clusters of apparel and textile firms in Vietnam, this paper investigates how firms' decisions to participate in seminars on export promotion are affected by their information exchange peers. We identify the effect of the number of peers participating in the seminars by using the number of randomly invited peers as an instrument. In addition, because we held three one-day seminars consecutively and invited each firm to one of the seminars, we can isolate the peer effects based on the reduction of the psychological costs of participation--or social utility--from other effects through information confirmation among the peer participants and free riding on peer information. We find that peers' participation in the seminars has a positive effect overall. To further decompose this positive effect, we distinguish between peers participating on the same day and other days, finding that the former has a positive effect while the latter has no significant effect. These results imply that peer effects arise mostly through the social utility channel. The presence of positive peer effects suggests that multiple equilibria in terms of the share of participants within each network of firms may emerge, which is also consistent with our observations. |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:16083&r=net |
| By: | Monica Billio (Università Ca' Foscari of Venice - Department of Economics); Lorenzo Frattarolo (Università Ca' Foscari of Venice - Department of Economics); Hayette Gatfaoui (IESEG - School of Management (LEM), CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Philippe De Peretti (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In this paper, we analyze the dynamic relationships between ten stock exchanges of the euro zone using Granger causal networks. Using returns for which we allow the variance to follow a Markov-Switching GARCH or a Changing-Point GARCH, we first show that over different periods, the topology of the network is highly unstable. In particular, over very recent years, dynamic relationships vanish. Then, expanding on this idea, we analyze patterns of information transmission. Using rolling windows to analyze the topologies of the network in terms of clustering, we show that the nodes' state changes continually, and that the system exhibits a high degree of flickering in information transmission. During periods of flickering, the system also exhibits desynchronization in the information transmission process. These periods do precede tipping points or phase transitions on the market, especially before the global financial crisis, and can thus be used as early warnings of phase transitions. To our knowledge, this is the first time that flickering clusters are identified on financial markets, and that flickering is related to phase transitions. |
| Keywords: | Causal Network,Topology,Clustering,Flickering,Desynchronisation,Phase transitions |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01339826&r=net |
| By: | Holger Graf (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Martin Kalthaus (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | We analyze the evolution of the international collaboration network in photovoltaic research. Using data on scientific publications for the period 1980-2015, we apply social network analysis to trace the evolution of the global network of countries and national research networks of organizations. Our objective is to identify the determinants of countries' international research embeddedness by looking at national policies and structural properties of the national research networks. We observe a steady increase of publications and collaboration within the global research network. While there is a small group of countries that remains central throughout all years, several countries emerge and catch up while others lose their relative position.We find that cohesion and connectedness of the national system positively affect research output as well as international embeddedness, whereas centralized systems are less embedded. Policy, especially demand side instruments, has a positive effect on publication output and embeddedness. |
| Keywords: | International Collaboration, Research Network, Photovoltaics, Instrument Mix, Bibliographic Data |
| JEL: | L14 O31 O38 Q42 |
| Date: | 2016–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2016-016&r=net |
| By: | Toshihiro Okubo (Faculty of Economics, Keio University); Tetsuji Okazaki (Faculty of Economics, The University of Tokyo); Eiichi Tomiura (Graduate School of Economics, Hitotsubashi University) |
| Abstract: | Cluster policy is designed to facilitate inter-firm networking. We examine industrial clusters in Japan based on firm-level transaction data. Firms in clusters expand transaction networks at a higher speed, but significantly only with firms in the agglomerated core Tokyo, not with local firms within the same region. We confirm the robustness by regional historical background as instruments. By disaggregating firms by their main bank types, we find that cluster firms expanding networks are mainly financed by regional banks, not by banks with nation-wide operations. This suggests the importance of intensive relationship with the main banks for inter-firm network formation. |
| Keywords: | cluster policy, transaction network |
| JEL: | O25 R11 R38 R58 |
| Date: | 2016–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2016-019&r=net |