nep-net New Economics Papers
on Network Economics
Issue of 2022‒11‒21
seven papers chosen by
Alfonso Rosa García
Universidad de Murcia

  1. Gender gap in politician performance and its determinants By Garcia-Hernandez, Ana; Grossman, Guy; Michelitch, Kristin
  2. Aggregate Fluctuations, Network Effects and Covid-19 By Girish Bahal; Damian Lenzo
  3. Social Networks and Access and Utilization of Weather and Climate Information: The Case of Upland Farming Communities in the Philippines By Tabuga, Aubrey D.; Domingo, Sonny N.; Umlas, Anna Jennifer L.; Zuluaga, Katrina Mae C.
  4. Crisis Propagation in a Heterogeneous Self-Reflexive DSGE Model By Federico Guglielmo Morelli; Michael Benzaquen; Jean-Philippe Bouchaud; Marco Tarzia
  5. Exposure to trade disruptions in case of the Russia-Ukraine conflict: a product network approach By Erik Braun; Emese Braun; András Gyimesi; Zita Iloskics; Tamás Sebestyén
  6. Using data-driven systems mapping to contextualise complexity economics insights By de Moura, Fernanda Senra; Barbrook-Johnson, Peter
  7. On the ratios of urban mobility, Part 1: the HoTer model of travel demand and network flows By Fabien Leurent

  1. By: Garcia-Hernandez, Ana; Grossman, Guy; Michelitch, Kristin
    Abstract: Women politicians face barriers that can undermine their performance relative to men. Using original micro-data from Uganda, we test for gender gaps in performance across different job duties in subnational legislatures. We hypothesize, and find, that performance gender gaps are greatest in job duties that require greater peer interaction (legislative duties), while no such gaps exist in more individually-performed duties (e.g., meeting with the electorate, facilitating constituency development). Fine-grained network data reveals women's informal exclusion in politician networks, and this exclusion holds explanatory power in explaining job duties requiring interaction with fellow politicians. Further, qualifications and previous experience also determine part of the gender performance gap in more intricate tasks. Moving forward, advocacy organizations may consider holding trainings and simulations with politicians on performing job duties in ways that encourage cross-gender professional network ties.
    Keywords: Politician performance,informal exclusion,networks,gender gap
    JEL: O10 H79 H83 H11
    Date: 2022
  2. By: Girish Bahal; Damian Lenzo
    Abstract: We decompose the macroeconomic impact of Covid-19 in the US using three production network measures. First, we estimate the aggregate indirect effect of sectoral employment shocks, finding these “network spillovers” to account for ≈72% of the decline in real GDP over the second quarter of 2020. Second, we show that downstream propagation explains most of the aggregate effect of the sector-specific disruptions. Specifically, 77% of the GDP decline constitutes the effect of shocks to supplier sectors on downstream customers. Finally, higher-order feedback is mostly inconsequential in explaining the depth of the contraction: only 5% of the aggregate impact is attributed to second-, third- and higher- round effects of the initial shocks.
    Keywords: production networks, Hulten’s theorem, disaggregated macroeconomic models, Covid-19
    JEL: D24 D5 D57 E23 E24 E32 O41
    Date: 2022–09
  3. By: Tabuga, Aubrey D.; Domingo, Sonny N.; Umlas, Anna Jennifer L.; Zuluaga, Katrina Mae C.
    Abstract: Social norms and structures are vital factors that shape people’s behavior and attitudes. It is, therefore, useful to analyze such underlying forces in the creation of strategies that are meant to influence behavior and activities. Agricultural extension services such as information dissemination and farmers’ training are some of the interventions that can benefit from such analyses especially within a context of limited human and financial resources. The idea is to use the lessons learned from the analysis of social networks and norms in identifying potential local knowledge and information disseminators, thereby aiding the extension services. It also helps in the formulation of more contextualized approaches for reaching the underserved and hard-to-reach areas. Applying this approach, this study used the case of a remote upland area in Atok, Benguet, a major vegetable producer. This study used social network analysis to develop insights for designing more effective extension strategies. The results show that interventions like information and education campaigns can be improved by acknowledging the nuances in social relation structures. Comments to this paper are welcome within 60 days from date of posting. Email
    Keywords: agriculture; Philippines; upland farming;Social network analysis; information and education campaign; Benguet farming
    Date: 2021
  4. By: Federico Guglielmo Morelli; Michael Benzaquen (LadHyX - Laboratoire d'hydrodynamique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique); Jean-Philippe Bouchaud; Marco Tarzia
    Abstract: We study a self-reflexive DSGE model with heterogeneous households, aimed at characterising the impact of economic recessions on the different strata of the society. Our framework allows to analyse the combined effect of income inequalities and confidence feedback mediated by heterogeneous social networks. By varying the parameters of the model, we find different crisis typologies: loss of confidence may propagate mostly within high income households, or mostly within low income households, with a rather sharp crossover between the two. We find that crises are more severe for segregated networks (where confidence feedback is essentially mediated between agents of the same social class), for which cascading contagion effects are stronger. For the same reason, larger income inequalities tend to reduce, in our model, the probability of global crises. Finally, we are able to reproduce a perhaps counter-intuitive empirical finding: in countries with higher Gini coefficients, the consumption of the lowest income households tends to drop less than that of the highest incomes in crisis times.
    Date: 2021
    Abstract: The recent outbreak of the Russia-Ukraine military conflict is expected to affect the world economy through global value chains due to sanctions imposed on the Russian economy and a severe decline in Ukrainian production. This study provides a first-cut analysis of the possible economic impact of this war on third countries. Using product-level export data from international trade statistics, we first identify the most important products exported by Ukraine and Russia. Then, applying a comprehensive indicator of exposure, we measure the dependence of third countries on products imported from Ukraine or Russia, taking into consideration indirect trade connections and the substitutability of imports with domestic production. The results show that Ukraine is dominant in global trade through exporting iron products and agricultural products, while Russia is important through exporting energy sources, raw materials, and iron products. Analysing countries’ total exposures, we found that the post-Soviet and European countries have high exposure to Russian imports, confirming the energy dependence of these countries. The Middle East and African countries heavily depend on Ukraine, especially for grain imports, possibly causing food security problems. Finally, the results explain why some European countries hesitate to apply sanctions on Russia in the field of energy sources.
    Keywords: International trade, Global value chains, Russia-Ukraine war, Network analysis, Exposure.
    Date: 2022–05
  6. By: de Moura, Fernanda Senra; Barbrook-Johnson, Peter
    Abstract: This article introduces and demonstrates a data-driven systems mapping approach designed to contextualise, communicate, and embed the insights of complexity economics in real world policy questions. This approach allows us to: build networks representing empirical regularities between a broad range of factors, analyse these networks in policy-relevant ways, and embed complexity economics insight in them. In using this approach to connect complexity economics with policy questions and a more rounded view of policy landscapes, we hope to help address a range of calls in recent literature for more usable, interpretable, and inclusive complexity economics outputs. We demonstrate the approach with the policy topic of the energy transition and its relationship with the Sustainable Development Goals (SDGs). We consider how the approach can be tuned to different purposes and contexts and explore two applied questions emerging from existing modelling results and policy topics: (i) the impact of the energy transition on SDGs and the role of biofuels, and (ii) the nature of climate impacts on the economy.
    Date: 2022–10
  7. By: Fabien Leurent (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Mobility systems in urbanized territories have been featured out in Travel Demand Models by state variables of land-use occupation, trip generation, trip distribution, modal split and network assignment, with emphasis on causal relationships between the variables and on spatial detail for each kind of variables. The article is aimed to provide notional averages, say ratios, for each kind of variables, and to state the causal relationships between the variables as simple analytical formulas between the ratios. This is achieved by going along the classical four steps of travel demand modeling, in a theoretical way for an idealized territory satisfying three postulates of homogeneity: namely, at block level, at link level and of indefinite spatial extension. The said formulas constitute rules of thumb linking the mobility ratios of spatial density of human occupation, trip emission rates, average trip lengths, modal shares, generalized trip cost per length unit, together with traffic variables of speed, flow rate and vehicular density at the link level. The model is stated in eight steps, namely (i) territorial composition, (ii) trip generation, (iii) trip lengths and traffic formation, (iv) quality of service, (v) trip distribution using a gravity model, (vi) modal split by multinomial logit, (vii) traffic laws, (viii) traffic equilibrium. It is followed by a Discussion of the model outreach and limitations. Areas of further research include traffic laws, impact assessment and economic analysis.
    Keywords: Spatial homogeneity,State laws,Four-step travel demand model,Traffic equilibrium Highlights
    Date: 2022–10–12

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