IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v134y2015icp45-48.html
   My bibliography  Save this article

Social networks as a catalyst of economic change

Author

Listed:
  • Sauter, Nicolas

Abstract

This letter finds that East Germans with strong social ties invested earlier in a popular new financial product after reunification, while long-term ownership remained unaffected. Hence, studies of the economic impact of social networks should distinguish transitory from long-run effects.

Suggested Citation

  • Sauter, Nicolas, 2015. "Social networks as a catalyst of economic change," Economics Letters, Elsevier, vol. 134(C), pages 45-48.
    • Handle: RePEc:eee:ecolet:v:134:y:2015:i:c:p:45-48
    DOI: 10.1016/j.econlet.2015.06.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176515002505
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2015.06.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Konrad B. Burchardi & Tarek A. Hassan, 2013. "The Economic Impact of Social Ties: Evidence from German Reunification," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 1219-1271.
    2. Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547.
    3. Fuchs-Schündeln, Nicola & Haliassos, Michael, 2015. "Does product familiarity matter for participation?," SAFE Working Paper Series 63, Leibniz Institute for Financial Research SAFE, revised 2015.
    4. repec:bla:jfinan:v:59:y:2004:i:1:p:137-163 is not listed on IDEAS
    5. Fidrmuc, Jan & Gërxhani, Klarita, 2008. "Mind the gap! Social capital, East and West," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 264-286, June.
    6. Harrison Hong & Jeffrey D. Kubik & Jeremy C. Stein, 2005. "Thy Neighbor's Portfolio: Word‐of‐Mouth Effects in the Holdings and Trades of Money Managers," Journal of Finance, American Finance Association, vol. 60(6), pages 2801-2824, December.
    7. Callois, Jean-Marc, 2013. "Social interaction and economic organization: Toward an integrative microeconomic model," Economics Letters, Elsevier, vol. 121(1), pages 98-100.
    8. Libman, Alexander & Obydenkova, Anastassia, 2013. "Communism or communists? Soviet legacies and corruption in transition economies," Economics Letters, Elsevier, vol. 119(1), pages 101-103.
    9. Russo, Francesco Flaviano, 2013. "Tax morale and tax evasion reports," Economics Letters, Elsevier, vol. 121(1), pages 110-114.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tabea Bucher†Koenen & Bettina Lamla†Dietrich, 2018. "The Long Shadow of Socialism: Puzzling Evidence on East†West German Differences in Financial Literacy," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 47(2-3), pages 413-438, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jan Fidrmuc, 2012. "How Persistent is Social Capital?," CEDI Discussion Paper Series 12-04, Centre for Economic Development and Institutions(CEDI), Brunel University.
    2. repec:mea:meawpa:14282 is not listed on IDEAS
    3. Nuria Badenes-Plá & Andrew M. Jones, 2003. "Addictive goods and taxes: A survey from an economic perspective," Hacienda Pública Española / Review of Public Economics, IEF, vol. 167(4), pages 123-153, December.
    4. Heineck, Guido & Süssmuth, Bernd, 2013. "A different look at Lenin’s legacy: Social capital and risk taking in the Two Germanies," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 789-803.
    5. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, University of Gothenburg, Department of Economics.
    6. Goldfayn-Frank, Olga & Wohlfart, Johannes, 2018. "How do consumers adapt to a new environment in their economic forecasting? Evidence from the German reunification," IMFS Working Paper Series 129, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    7. Kiichi Tokuoka, 2017. "Is stock investment contagious among siblings?," Empirical Economics, Springer, vol. 52(4), pages 1505-1528, June.
    8. Nikolova, Milena & Roman, Monica & Zimmermann, Klaus F., 2017. "Left behind but doing good? Civic engagement in two post-socialist countries," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 658-684.
    9. Ishii, Joy & Xuan, Yuhai, 2014. "Acquirer-target social ties and merger outcomes," Journal of Financial Economics, Elsevier, vol. 112(3), pages 344-363.
    10. Gareth D. Leeves, 2014. "Increasing returns to education and the impact on social capital," Education Economics, Taylor & Francis Journals, vol. 22(5), pages 449-470, October.
    11. Badarinza, Cristian & Ramadorai, Tarun & Shimizu, Chihiro, 2022. "Gravity, counterparties, and foreign investment," Journal of Financial Economics, Elsevier, vol. 145(2), pages 132-152.
    12. Nicolas R. Ziebarth & Gert G. Wagner, 2013. "Top-down v. Bottom-up: The Long-Term Impact of Government Ideology and Personal Experience on Values," Discussion Papers of DIW Berlin 1280, DIW Berlin, German Institute for Economic Research.
    13. Jennie Bai & Massimo Massa, 2021. "Is Human-Interaction-based Information Substitutable? Evidence from Lockdown," NBER Working Papers 29513, National Bureau of Economic Research, Inc.
    14. Ly, Kim Cuong & Liu, Hong & Opong, Kwaku, 2017. "Who acquires whom among stand-alone commercial banks and bank holding company affiliates?," International Review of Financial Analysis, Elsevier, vol. 54(C), pages 144-158.
    15. David Madden, 2002. "Do Tobacco Taxes Influence Starting and Quitting Smoking? A Discrete Choice Approach Using Evidence from a Sample of Irish Women," Working Papers 200205, School of Economics, University College Dublin.
    16. Massa, Massimo & Bai, Jennie, 2021. "Is Hard and Soft Information Substitutable? Evidence from the Lockdowns," CEPR Discussion Papers 15744, C.E.P.R. Discussion Papers.
    17. Tim Friehe & Mario Mechtel, 2014. "Statuskonsum in Ost- und Westdeutschland: Beeinflusst durch das politische Regime?," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 21(03), pages 31-36, June.
    18. Eibich, Peter & Ziebarth, Nicolas, 2014. "Examining the Structure of Spatial Health Effects in Germany Using Hierarchical Bayes Models," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 49, pages 305-320.
    19. Konstantinos Matakos & Dimitrios Minos & Ari Perdana & Elizabeth Radin, 2022. "“Dragon boating” alone? Community ties and systemic income shocks," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(1), pages 55-81, January.
    20. Blake, David & Caulfield, Tristan & Ioannidis, Christos & Tonks, Ian, 2014. "Improved inference in the evaluation of mutual fund performance using panel bootstrap methods," Journal of Econometrics, Elsevier, vol. 183(2), pages 202-210.
    21. Ida, Takanori & Goto, Rei & Takahashi, Yuko & Nishimura, Shuzo, 2011. "Can economic-psychological parameters predict successful smoking cessation?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(3), pages 285-295, May.

    More about this item

    Keywords

    Social networks; Portfolio choice; Split-population duration model; German reunification;
    All these keywords.

    JEL classification:

    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:134:y:2015:i:c:p:45-48. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.