Germs, Social Networks and Growth

Alessandra Fogli and Laura Veldkamp

No 18470, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Does the pattern of social connections between individuals matter for macroeconomic outcomes? If so, where do these differences come from and how large are their effects? Using network analysis tools, we explore how different social network structures affect technology diffusion and thereby a country's rate of growth. The model also explains how different social networks may emerge endogenously in response to the prevalence of infectious disease. Initial differences in disease prevalence can produce different network structures, leading to divergent levels of income. We compare calibrated model predictions with data. The model and data agree that a one-standard-deviation increase in our index of network diffusion speed results in output growth that is 1/2% higher per year.

JEL-codes: E02 O1 O33 (search for similar items in EconPapers)
Date: 2012-10
New Economics Papers: this item is included in nep-fdg, nep-mac, nep-net and nep-soc
Note: DEV EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Published as Alessandra Fogli & Laura Veldkamp, 2021. "Germs, Social Networks, and Growth," The Review of Economic Studies, vol 88(3), pages 1074-1100.

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Related works:
Journal Article: Germs, Social Networks, and Growth (2021)
Working Paper: Germs, Social Networks and Growth (2018)
Working Paper: Germs, Social Networks, and Growth (2018)
Working Paper: Germs, Social Networks and Growth (2014)
Working Paper: Germs, Social Networks and Growth (2012)
Working Paper: Germs, Social Networks, and Growth (2012)
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