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on Network Economics |
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Issue of 2017‒10‒29
four papers chosen by Pedro CL Souza Pontifícia Universidade Católica do Rio de Janeiro |
| By: | Kartik Anand; Iman van LelyveldAuthor-Name: Ádám Banai; Soeren Friedrich; Rodney Garratt; Grzegorz HałajAuthor-Name: Jose Fique; Ib Hansen; Serafín Martínez Jaramillo; Hwayun Lee; José Luis Molina-Borboa; Stefano Nobili; Sriram Rajan; Dilyara Salakhova; Thiago Christiano Silva; Laura Silvestri; Sergio Rubens Stancato de Souza |
| Abstract: | Capturing financial network linkages and contagion in stress test models are important goals for banking supervisors and central banks responsible for micro- and macroprudential policy. However, granular data on financial networks is often lacking, and instead the networks must be reconstructed from partial data. In this paper, we conduct a horse race of network reconstruction methods using network data obtained from 25 different markets spanning 13 jurisdictions. Our contribution is two-fold: first, we collate and analyze data on a wide range of financial networks. And second, we rank the methods in terms of their ability to reconstruct the structures of links and exposures in networks. JEL Classification: G20, L14, D85, C63 |
| Keywords: | network reconstruction, market structure, intermediation |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:srk:srkwps:201751&r=net |
| By: | Jaegeum Lim; Jonathan Meer |
| Abstract: | Obesity among children is an important public health concern, and social networks may play a role in students' habits that increase the likelihood of being overweight. We examine data from South Korean middle schools, where students are randomly assigned to classrooms, and exploit the variation in peer body mass index. We use the number of peers' siblings as an instrument to account for endogeneity concerns and measurement error. Heavier peers increase the likelihood that a student is heavier; there is no spurious correlation for height, which is unlikely to have peer contagion. Public policy that targets obesity can have spillovers through social networks. |
| JEL: | I12 J13 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23901&r=net |
| By: | Ali Ozdagli; Michael Weber |
| Abstract: | Monetary policy shocks have a large impact on aggregate stock market returns in narrow event windows around press releases by the Federal Open Market Committee. We use spatial autoregressions to decompose the overall effect of monetary policy shocks into a direct (demand) effect and an indirect (network) effect. We attribute 50%-85% of the overall effect to indirect effects. The decomposition is robust to different sample periods, event windows, and types of announcements. Direct effects are larger for industries selling most of the industry output to end-consumers compared to other industries. We find similar evidence of large indirect effects using ex-post realized cash-flow fundamentals. A simple model with intermediate inputs guides our empirical methodology. Our findings indicate that production networks might be an important propagation mechanism of monetary policy to the real economy. |
| Keywords: | input-output linkages, spillover effects, asset prices, high frequency identification |
| JEL: | E12 E31 E44 E52 G12 G14 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6486&r=net |
| By: | Frattini, Tommaso (University of Milan); Meschi, Elena (Università Ca’ Foscari di Venezia) |
| Abstract: | This paper provides new evidence on how the presence of immigrant peers in the classroom affects native student achievement. The analysis is based on longitudinal administrative data on two cohorts of vocational training students in Italy's largest region. Vocational training institutions provide the ideal setting for studying these effects because they attract not only disproportionately high shares of immigrants but also the lowest ability native students. We adopt a value added model, and exploit within-school variation both within and across cohorts for identification. Our results show small negative average effects on maths test scores that are larger for low ability native students, strongly non-linear and only observable in classes with a high (top 20%) immigrant concentration. These outcomes are driven by classes with a high average linguistic distance between immigrants and natives, with no apparent role played by ethnic diversity. |
| Keywords: | immigration, education, peer effects, vocational training, language |
| JEL: | I20 J15 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11027&r=net |