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The cost of segregation in (social) networks

Nizar Allouch

Games and Economic Behavior, 2017, vol. 106, issue C, 329-342

Abstract: This paper investigates the welfare effect of income redistribution in the private provision of public goods on networks. We first show that the welfare effect of income redistribution is determined by Bonacich centrality. Then we develop an index based on the network structure of interactions, which, roughly speaking, measures the welfare effect of income redistribution confined to a component of contributors. The proposed index vanishes when applied to large components of contributors that display special segregated interactions, which suggests an “asymptotic neutrality” of redistributive policies.

Keywords: Public goods; Income redistribution; Welfare effect; Networks; Bonacich transfer index (search for similar items in EconPapers)
JEL-codes: C72 D31 H41 (search for similar items in EconPapers)
Date: 2017
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Related works:
Working Paper: The Cost of Segregation in Social Networks (2013) Downloads
Working Paper: The Cost of Segregation in Social Networks (2013) Downloads
Working Paper: The Cost of Segregation in Social Networks (2013) Downloads
Working Paper: The Cost of Segregation in Social Networks (2013) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:106:y:2017:i:c:p:329-342

DOI: 10.1016/j.geb.2017.08.012

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