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on Network Economics |
| By: | Michael B. Devereux; Karine Gente; Changhua Yu |
| Abstract: | This paper analyzes the impact of fiscal spending shocks in a multi-country model with international production networks. In contrast to standard results suggesting that production network linkages are unimportant for the aggregate response to macro shocks in a closed economy, we show that network structures may place a central role in the international propagation of fiscal shocks, particularly when wages are slow to adjust. The paper first develops a simple general equilibrium multi-country model and derives some analytical results on the response to fiscal spending shocks. We then apply the model to an analysis of fiscal spillovers in the Eurozone, using the calibrated sectoral network structure from the World Input Output Database (WIOD). In a version of the model with sticky wages, we find that fiscal spillovers from Germany and some other large Eurozone countries may be large, and within the range of empirical estimates. More importantly, we find that the Eurozone production network is very important for the international spillovers. In the absence of international production network linkages, spillovers would be only a third as large as predicted by the baseline model. Finally, we explore the diffusion of identified German government spending at the sectoral level, both within and across countries. We find that government expenditures have both significant upstream and downstream effects when these links are measured by the direction of sectoral production linkages. |
| JEL: | E23 E62 F20 F42 H50 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28149&r=all |
| By: | John List; Fatemeh Momeni; Yves Zenou |
| Abstract: | The behavioral revolution within economics has been largely driven by psychological insights, with the sister sciences playing a lesser role. This study leverages insights from sociology to explore the role of neighborhoods on human capital formation at an early age. We do so by estimating the spillover effects from a large-scale early childhood intervention on the educational attainment of over 2000 disadvantaged children in the United States. We document large spillover effects on both treatment and control children who live near treated children. Interestingly, the spillover effects are localized, decreasing with the spatial distance to treated neighbors. Perhaps our most novel insight is the underlying mechanisms at work: the spillover effect on non-cognitive scores operate through the child's social network while parental investment is an important channel through which cognitive spillover effects operate. Overall, our results reveal the importance of public programs and neighborhoods on human capital formation at an early age, highlighting that human capital accumulation is fundamentally a social activity. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:feb:natura:00722&r=all |
| By: | Hanno Kruse (Institute of Sociology and Social Psychology, University of Cologne, 50923 Köln, Germany); Clemens Kroneberg (of Sociology and Social Psychology, University of Cologne, 50923 Köln, Germany) |
| Abstract: | Different lines of research have argued that specific groups, such as boys or ethnic minorities, are more prone to develop an anti-school culture than others, leading to group differences in the social acceptance of high performers. Taking an ecological view, we ask to what extent the school context promotes or prevents the emergence of group-specific oppositional cultures. Theoretically, we argue that group-based oppositional cultures become more likely in schools with low socio-economic resources and in schools where socio-economic differences align with demographic attributes. We test our hypotheses based on data from a large-scale, four-wave network panel survey among more than 3000 students in Germany. Applying stochastic actor-oriented models for the coevolution of networks and behavior, we find that group-based oppositional cultures in which students like high performers less are very rare. However, in line with theoretical expectations, boys tend to evaluate high-performing peers less positively than girls do in schools that are less resourceful. Moreover, ethnic minority boys tend to evaluate high performers less positively than majority boys do in schools where the former tend to come from socio-economically less resourceful families. |
| Keywords: | gender, ethnicity, school performance, social networks, stochastic actor-oriented models |
| JEL: | I24 Z13 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:044&r=all |
| By: | Aldasoro, Iñaki (Bank for International Settlements); Hüser, Anne-Caroline (Bank of England); Kok, Christoffer (European Central Bank) |
| Abstract: | We provide a simple and tractable accounting-based stress-testing framework to assess loss dynamics in the banking sector, in a context of leverage targeting. Contagion can occur through direct interbank exposures, and indirect exposures due to overlapping portfolios with the associated price dynamics via fire sales. We apply the framework to three granular proprietary ECB data sets, including an interbank network of 26 large euro-area banks as well as their overlapping portfolios of loans, derivatives and securities. A five per cent shock to the price of assets held in the trading book leads to an initial loss of 30 per cent of system equity and an additional loss of 1.3 per cent due to fire sales spillovers. Direct interbank contagion is negligible in our analysis. Our findings underscore the importance of accurately estimating the price effects of fire sales. |
| Keywords: | Interbank networks; contagion; overlapping portfolios; fire sales; stress testing |
| JEL: | C63 G01 G18 G21 |
| Date: | 2020–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:boe:boeewp:0897&r=all |
| By: | Simone Balestra; Aurélien Sallin; Stefan C. Wolter |
| Abstract: | This paper examines how exposure to students identified as gifted (IQ ≥ 130) affects achievement in secondary school, enrollment in post-compulsory education, and occupational choices. By using student-level administrative data on achievement combined with psychological examination records, we study the causal impact of gifted students on their classmates in unprecedented detail. We find a positive and significant effect of the exposure to gifted students on school achievement in both math and language. The impact of gifted students is, however, highly heterogeneous along three dimensions. First, we observe the strongest effects among male students and high achievers. Second, we show that male students benefit from the presence of gifted peers in all subjects regardless of their gender, whereas female students seem to benefit primarily from the presence of female gifted students. Third, we find that gifted students diagnosed with emotional or behavioral disorders have zero-to-negative effects on their classmates’ performance, a detrimental effect more pronounced for female students. Finally, exposure to gifted students in school has consequences that extend beyond the classroom: it increases the likelihood of choosing a selective academic track as well as occupations in STEM fields. |
| Keywords: | gifted students, peer quality, gender, math, peer effects |
| JEL: | I21 I24 I26 J24 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8793&r=all |
| By: | Manfred J. Holler (University of Hamburg and CCR-Munich); Florian Rupp (Technical University Munich and CCR-Munich) |
| Abstract: | This paper analyzes a network constituency which is characterized by voting in a political network. It applies power index analysis to the notorious Krackhardt’s kite social network by imposing a weighted voting game on the given network structure. It compares the results of this analysis, derived by applying the Public Good Index and the Public Value, with the outcome of employing the centrality concepts - degree centrality, closeness centrality, and betweenness centrality - that we find in Krackstadt (1990), and eigenvector centrality. Alternative collective decision rules and alternative network structure are considered. The study is concurs with a real-world collective decision problem which one of the authors experiences concerning a massive expansion of housebuilding with the City of Munich, the State of Bavaria and some German Federal Government institutions as possible players in a decision network. Other players are the Nature and Biodiversity Conservation Union, the farmers who are threatened by the expropriation of land and the incumbent inhabitants of the area who like their last resort of green fields and relatively fresh air, and already suffer from the heavy traffic in this area. The city’s housebuilding project is strongly contested. |
| Keywords: | network, centrality, Public Good Index, Public Value, power indices, weighted voting game, collective decision rules |
| JEL: | C70 C72 D72 D85 L14 Z13 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cccrwp:2019-07-ccr&r=all |
| By: | Neal, Zachary; Domagalski, Rachel; Yan, Xiaoqin |
| Abstract: | Effective lawmaking requires collaboration among legislators, who form coalitions to advance their legislative agendas. In the US House of Representatives, these collaborations develop in a context of shifting political party control. In this paper we explore how legislators' party and gender identities simultaneously influence whom they choose as collaborators by examining differential party and gender homophily during a period of shifting party control and increasing representation of women. We introduce new methods for inferring legislative collaboration networks from bill co-sponsorship data, then estimate cross-sectional logistic regression models on these networks from 1981 -- 2015. We find evidence of differential homophily by both party and gender: Republicans and women tend to prefer same-party and same-gender political collaborators more than Democrats and men. However, party homophily (i.e. partisanship) is stronger than gender homophily, suggesting that party is a more salient identity for legislators than gender. |
| Date: | 2020–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:qwdxs&r=all |
| By: | Francesco Agostinelli (University of Pennsylvania); Matthias Doepke (Northwestern University); Giuseppe Sorrenti (University of Amsterdam); Fabrizio Zilibotti (Yale University) |
| Abstract: | What are the effects of school closures during the COVID-19 pandemic on children’s education? Online education is an imperfect substitute for in-person learning, particularly for children from low-income families. Peer effects also change: schools allow children from different socio-economic backgrounds to mix together, and this effect is lost when schools are closed. Another factor is the response of parents, some of whom compensate for the changed environment through their own efforts, while others are unable to do so. We examine the interaction of these factors with the aid of a structural model of skill formation. We find that school closures have a large and persistent effect on educational outcomes that is highly unequal. High school students from poor neighborhoods suffer a learning loss of 0.4 standard deviations, whereas children from rich neighborhoods remain unscathed. The channels operating through schools, peers, and parents all contribute to growing educational inequality during the pandemic. |
| Keywords: | COVID-19, skill acquisition, peer effects, parenting, parenting style, neighborhood effects, pandemic |
| JEL: | I24 J13 J24 R20 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2020-084&r=all |
| By: | Richard S. J. Tol |
| Abstract: | The paper presents the professor-student network of Nobel laureates in economics. 74 of the 79 Nobelists belong to one family tree. The remaining 5 belong to 3 separate trees. There are 350 men in the graph, and 4 women. Karl Knies is the central-most professor, followed by Wassily Leontief. No classical and few neo-classical economists have left notable descendants. Harvard is the central-most university, followed by Chicago and Berlin. Most candidates for the Nobel prize belong to the main family tree, but new trees may arise for the students of Terence Gorman and Denis Sargan. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2012.00103&r=all |
| By: | Peride K. Blind |
| Abstract: | The humanitarian-development divide has long been a contentious debate in both academia and government. Despite the recent surge in the cost, frequency, duration and severity of humanitarian crises, humanitarian and development disciplines and communities of practice have continued to operate in silos. This article aims to bridge the humanitarian-development divide by interlinking the Agenda for Humanity and the 2030 Agenda for Sustainable Development. The newly proposed context-conflict-contingency model of humanitarian-development connections constitutes the conceptual foundation, which is then tested by the findings of the network analysis of the 169 SDG targets of the 2030 Agenda and the 5 responsibilities, 24 transformations and 32 core commitments of the Agenda for Humanity. The basic premise is that if policy makers can locate the linkages between the two agendas, they can more readily think about how certain SDG targets can work towards the achievement of both development and humanitarian goals. Steps that lead to operational guidelines for doing so are not covered in this article. They could be the topic of the next research agendas. |
| Keywords: | sustainable development, Sustainable Development Goals, SDGs, development, development planning, humanitarian-development divide, conflict, conflict resolution, crisis management, peace, policy formulation, public policy |
| JEL: | D74 D78 J18 O19 O20 O21 Q01 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:une:wpaper:160&r=all |