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Network cohesion

Author

Listed:
  • Tiago V. V. Cavalcanti

    (University of Cambridge, Faculty of Economics)

  • Chryssi Giannitsarou

    (University of Cambridge, Faculty of Economics)

  • Charles R. Johnson

    (College of William and Mary)

Abstract

We define a measure of network cohesion and show how it arises naturally in a broad class of dynamic models of endogenous perpetual growth with network externalities. Via a standard growth model, we show why network cohesion is crucial for conditional convergence and explain that as cohesion increases, convergence is faster. We prove properties of network cohesion and define a network aggregator that preserves network cohesion.

Suggested Citation

  • Tiago V. V. Cavalcanti & Chryssi Giannitsarou & Charles R. Johnson, 2017. "Network cohesion," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 64(1), pages 1-21, June.
    • Handle: RePEc:spr:joecth:v:64:y:2017:i:1:d:10.1007_s00199-016-0992-1
    DOI: 10.1007/s00199-016-0992-1
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    References listed on IDEAS

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    1. Isabel Melguizo, 2019. "Homophily and the Persistence of Disagreement," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1400-1424.
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    6. Tiago V. V. Cavalcanti & Chryssi Giannitsarou, 2017. "Growth and Human Capital: A Network Approach," Economic Journal, Royal Economic Society, vol. 127(603), pages 1279-1317, August.
    7. Cecilia García-Peñalosa & Stephen Turnovsky, 2008. "Consumption externalities: a representative consumer model when agents are heterogeneous," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(3), pages 439-467, December.
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