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on Network Economics |
| By: | Jonathan Eggleston; Chase Sawyer |
| Abstract: | Social capital, the strength of people’s friendship networks and community ties, has been hypothesized as an important determinant of survey participation. Investigating this hypothesis has been difficult given data constraints. In this paper, we provide insights by investigating how response rates and nonresponse bias in the American Community Survey are correlated with county-level social network data from Facebook. We find that areas of the United States where people have more exclusive and homogenous social networks have higher nonresponse bias and lower response rates. These results provide further evidence that the effects of social capital may not be simply a matter of whether people are socially isolated or not, but also what types of social connections people have and the sociodemographic heterogeneity of their social networks. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:24-01&r=net |
| By: | Christis Katsouris |
| Abstract: | This article studies identification and estimation for the network vector autoregressive model with nonstationary regressors. In particular, network dependence is characterized by a nonstochastic adjacency matrix. The information set includes a stationary regressand and a node-specific vector of nonstationary regressors, both observed at the same equally spaced time frequencies. Our proposed econometric specification correponds to the NVAR model under time series nonstationarity which relies on the local-to-unity parametrization for capturing the unknown form of persistence of these node-specific regressors. Robust econometric estimation is achieved using an IVX-type estimator and the asymptotic theory analysis for the augmented vector of regressors is studied based on a double asymptotic regime where both the network size and the time dimension tend to infinity. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.04050&r=net |
| By: | Syngjoo Choi (SNU - Seoul National University [Seoul]); Sanjeev Goyal (CAM - University of Cambridge [UK], NYU - New York University [New York] - NYU - NYU System); Frederic Moisan (EM - emlyon business school) |
| Abstract: | "This paper provides experimental evidence on the economic determinants of intermediation networks by considering two pricing rules—respectively, criticality and betweenness—and three group sizes of subjects—10, 50, and 100 subjects. We find that when brokerage benefits accrue only to traders who lie on all paths of intermediation, stable networks involve interconnected cycles, and trading path lengths grow while linking and payoff inequality remain modest as the number of traders grows. By contrast, when brokerage benefits are equally distributed among traders on the shortest paths, stable networks contain a few hubs that provide the vast majority of links, and trading path lengths remain unchanged while linking and payoff inequality explode as the number of traders grows." |
| Keywords: | intermediation networks, brokerage rents, large-scale laboratory experiment |
| Date: | 2023–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04325708&r=net |
| By: | Claire Bidart (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique); Rym Ibrahim (Kedge BS - Kedge Business School, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique, UJM - Université Jean Monnet - Saint-Étienne, COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne) |
| Abstract: | The transition to entrepreneurship is a complex process, and the study of which requires innovative adapted methods. The social sciences can help shed light on this process, considering in particular the social and technological contexts that are involved in these trajectories. In this chapter, we focus on the roles that personal networks of the entrepreneurs, combined with digital tools, play in accessing resources. We propose a precise scientific method to better understand the emergence of resources from personal networks along the entrepreneurial processes. Indeed, a very precise and longitudinal collection of personal network data allows to better shed light on the emergence of resources and opportunities during the entrepreneurial process, sometimes in unexpected pockets. This method is particularly powerful for considering relationship-based strategies for finding resources and opportunities, including when relationships are distributed across multiple geographical locations or are digitally mediated. Our network analysis relies on four dimensions: quality of alters (meeting context, similarity, diversity, etc.), of ties (strength, focus, emotional intensity, etc.), of whole network structure (density, modularity, centralization, etc.), and of alters' positioning in the structure. Finally, we directly illustrate our propositions through the specific case study of a recruiter who started and managed to develop his activity on his own, as a digital nomad. |
| Keywords: | Digital Nomadism, Social Network Analysis, Entrepreneurial Process, Processual Analysis, Methodology |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04383505&r=net |
| By: | Houda Nait El Barj; Theophile Sautory |
| Abstract: | We study the dynamics of opinions in a setting where a leader has a payoff that depends on agents' beliefs and where agents derive psychological utility from their beliefs. Agents sample a signal that maximises their utility and then communicate with each other through a network formed by disjoint social groups. The leader has a choice to target a finite set of social groups with a specific signal to influence their beliefs and maximise his returns. Heterogeneity in agents' preferences allows us to analyse the evolution of opinions as a dynamical system with asymmetric forces. We apply our model to explain the emergence of hatred and the spread of racism in a society. We show that when information is restricted, the equilibrium level of hatred is determined solely by the belief of the most extremist agent in the group regardless of the inherent structure of the network. On the contrary, when information is dense, the space is completely polarised in equilibrium with the presence of multiple "local truths" which oscillate in periodic cycles. We find that when preferences are uniformly distributed, the equilibrium level of hatred depends solely on the value of the practical punishment associated with holding a hate belief. Our finding suggests that an optimal policy to reduce hatred should focus on increasing the cost associated with holding a racist belief. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.07178&r=net |
| By: | Bergeaud, Antonin; Guillouzouic, Arthur |
| Abstract: | Following Bergeaud et al. (2022), we construct a new measure of proximity between industrial sectors and public research laboratories. Using this measure, we explore the underlying network of knowledge linkages between scientific fields and industrial sectors in France. We show empirically that there exists a significant negative correlation between the geographical distance between firms and laboratories and their scientific proximity, suggesting strongly localized spillovers. Moreover, we uncover some important differences by field, stronger than when using standard patent-based measures of proximity. |
| Keywords: | knowledge spillovers; technological distance; public laboratories |
| JEL: | O32 O38 R12 |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121289&r=net |
| By: | Zan Yu; Lianzeng Zhang |
| Abstract: | In this paper, we propose a new efficient method for calculating the Gerber-Shiu discounted penalty function. Generally, the Gerber-Shiu function usually satisfies a class of integro-differential equation. We introduce the physics-informed neural networks (PINN) which embed a differential equation into the loss of the neural network using automatic differentiation. In addition, PINN is more free to set boundary conditions and does not rely on the determination of the initial value. This gives us an idea to calculate more general Gerber-Shiu functions. Numerical examples are provided to illustrate the very good performance of our approximation. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.04378&r=net |
| By: | Timofey Shalpegin (University of Auckland Business School [New Zealand]); Ajay Kumar (EM - emlyon business school); Tyson Browning (TCU - Texas Christian University) |
| Abstract: | "Economic sanctions and consumer boycotts are common tools to punish organizations for undesirable behavior and attempt to coerce them to change their actions. However, these tools occasionally spill over beyond the intended recipients and affect guiltless supply chain members, jeopardizing the principles of diversity, equity, and inclusion in supply chains. This study identifies four channels through which sanctions and boycotts propagate through supply chains. In particular, supply chain members can be affected by direct relationships with targeted organizations, disruptions in accessing foreign markets, inability to access technology, and logistics failures. Potential solutions include mapping supply chains, proactive cooperation, network analysis, and shortening supply chains. While the work provides a general framework for research and practitioners, it also identifies areas for further studies, such as the role of new technologies and the effect of sanctions and boycotts on supply chain sustainability." |
| Date: | 2023–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04325729&r=net |
| By: | Tabuga, Aubrey D.; Vargas, Anna Rita P.; Baino, Madeleine Louise S. |
| Abstract: | The challenges faced by farming communities, such as typhoons, floods, droughts, volcanic eruptions, and pest infestations, can pose significant costs to their livelihoods. This study examines the resilience of upland farming households using a small yet novel survey conducted in the municipality of Atok in Benguet. To analyze resilience, the study explores indicators based on the conceptual framework Schipper and Langston (2015) put forward, namely learning, options, and flexibility. Principal Components Analysis (PCA) was applied for index creation, while ordered logistic regression was employed to assess recovery levels of farming households. The findings show that factors contributing to the learning dimension of resilience include wealth/assets, strategic positioning within social networks, and access to transportation proxied by vehicle ownership. The study recommends targeted interventions for households in lower-income brackets, peripheral network positions, and those lacking their own means of transportation, especially focusing on enhancing learning capacities. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | resilience;upland farming;recovery;agricultural sector |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2023-24&r=net |
| By: | Beata S. Javorcik; Lucas Kitzmüller; Helena Schweiger; Muhammed A. Yildirim; Beata Smarzynska Javorcik; Muhammed Ali Yildirim |
| Abstract: | Geo-political tensions and disruptions to global value chains have led policy makers to re-evaluate their approach to globalisation. Many countries are considering friend-shoring – trading primarily with countries sharing similar values – as a way of minimising exposure to weaponisation of trade and securing access to critical inputs. If followed through, this process has the potential to reverse global economic integration of recent decades. This paper estimates the economic costs of friend-shoring using a quantitative model incorporating inter-country inter-industry linkages. The results suggest that friend-shoring may lead to real GDP losses of up to 4.7% of GDP in some economies. Thus, although friend-shoring may provide insurance against extreme disruptions and increase the security of supply of vital inputs, it would come at a substantial cost. |
| Keywords: | friend-shoring, regionalisation, global trade and production network, international I-O linkages |
| JEL: | F15 F51 F60 R15 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10869&r=net |