IDEAS home Printed from https://ideas.repec.org/p/sgh/kaewps/2018036.html
   My bibliography  Save this paper

Social Network Dynamics: Individual-Level Mechanisms and Aggregate Outcomes

Author

Listed:
  • Katarzyna Growiec
  • Jakub Growiec
  • Bogumil Kaminski

Abstract

Based on a calibrated computational multi-agent model with an overlapping generations structure, we investigate society-level consequences of creation and destruction of social ties at the individual level. The steady state of the simulated social network exhibits realistic small-world topology. We also find that societies whose social networks are relatively frequently reconfigured, display relatively higher social trust, willingness to cooperate, and economic performance - at the cost of lower social utility. Similar outcomes are found for societies where social tie dissolution is relatively weakly linked to family closeness.

Suggested Citation

  • Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2018. "Social Network Dynamics: Individual-Level Mechanisms and Aggregate Outcomes," KAE Working Papers 2018-036, Warsaw School of Economics, Collegium of Economic Analysis.
    • Handle: RePEc:sgh:kaewps:2018036
    as

    Download full text from publisher

    File URL: http://kolegia.sgh.waw.pl/pl/KAE/Documents/WorkingPapersKAE/WPKAE_2018_036.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Mapping the Dimensions of Social Capital," KAE Working Papers 2017-025, Warsaw School of Economics, Collegium of Economic Analysis.
    2. Stephen Knack & Philip Keefer, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1251-1288.
    3. Sjoerd Beugelsdijk & Sjak Smulders, 2003. "Bridging and Bonding Social Capital: which type is good for economic growth?," ERSA conference papers ersa03p517, European Regional Science Association.
    4. Sabatini, Fabio, 2009. "Social capital as social networks: A new framework for measurement and an empirical analysis of its determinants and consequences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(3), pages 429-442, June.
    5. Ambrose Leung & Cheryl Kier & Tak Fung & Linda Fung & Robert Sproule, 2011. "Searching for Happiness: The Importance of Social Capital," Journal of Happiness Studies, Springer, vol. 12(3), pages 443-462, June.
    6. Alberto Alesina & Paola Giuliano, 2010. "The power of the family," Journal of Economic Growth, Springer, vol. 15(2), pages 93-125, June.
    7. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    8. Christian Kroll, 2011. "Different Things Make Different People Happy: Examining Social Capital and Subjective Well-Being by Gender and Parental Status," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 104(1), pages 157-177, October.
    9. Katarzyna Growiec & Jakub Growiec, 2014. "Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Happiness in CEE Countries," Journal of Happiness Studies, Springer, vol. 15(5), pages 1015-1040, October.
    10. Théophile T. Azomahou & Raouf Boucekkine & Bity Diene, 2009. "A closer look at the relationship between life expectancy and economic growth," International Journal of Economic Theory, The International Society for Economic Theory, vol. 5(2), pages 201-244, June.
    11. Boucekkine, Raouf & de la Croix, David & Licandro, Omar, 2002. "Vintage Human Capital, Demographic Trends, and Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 104(2), pages 340-375, June.
    12. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
    13. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    14. repec:hal:spmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    15. Jakub Growiec & Bogumił Kamiński & Katarzyna Growiec, 2017. "Social Network Structure and The Trade-Off Between Social Utility and Economic Performance," EcoMod2017 10279, EcoMod.
    16. Rainer Winkelmann, 2009. "Unemployment, Social Capital, and Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 10(4), pages 421-430, August.
    17. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Mapping the Dimensions of Social Capital," Working Papers 2017-025, Warsaw School of Economics, Collegium of Economic Analysis.
    18. Growiec, Jakub & Growiec, Katarzyna, 2007. "Social Capital, Well-Being, and Earnings: Theory and Evidence from Poland," MPRA Paper 7071, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    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. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Social Network Structure and The Trade-Off Between Social Utility and Economic Performance," KAE Working Papers 2017-026, Warsaw School of Economics, Collegium of Economic Analysis.
    2. Katarzyna Growiec & Jakub Growiec & Bogumil Kaminski, 2017. "Mapping the Dimensions of Social Capital," KAE Working Papers 2017-025, Warsaw School of Economics, Collegium of Economic Analysis.
    3. Katarzyna Growiec & Jakub Growiec & Bogumił Kamiński, 2020. "Emergence of Small-World Networks in an Overlapping-Generations Model of Social Dynamics, Trust and Economic Performance," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 23(2), pages 1-8.
    4. Katarzyna Growiec & Jakub Growiec, 2016. "Bridging Social Capital and Individual Earnings: Evidence for an Inverted U," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 601-631, June.
    5. Katarzyna Growiec & Jakub Growiec, 2014. "Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Happiness in CEE Countries," Journal of Happiness Studies, Springer, vol. 15(5), pages 1015-1040, October.
    6. YODO Masato & YANO Makoto, 2017. "Household Income and the OECD's Four Types of Social Capital," Discussion papers 17119, Research Institute of Economy, Trade and Industry (RIETI).
    7. Sehee Han & Heaseung Kim & Hee-Sun Lee, 2013. "A Multilevel Analysis of the Compositional and Contextual Association of Social Capital and Subjective Well-Being in Seoul, South Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 111(1), pages 185-202, March.
    8. Crowley, Frank & Walsh, Edel, 2018. "How important are Personal Ties, Trust and Tolerance for Life Satisfaction in Europe?," SRERC Working Paper Series SRERCWP2018-1, University College Cork (UCC), Spatial and Regional Economic Research Centre (SRERC).
    9. Growiec, Katarzyna & Growiec, Jakub, 2010. "Trusting Only Whom You Know, Knowing Only Whom You Trust: The Joint Impact of Social Capital and Trust on Individuals' Economic Performance and Well-Being in CEE Countries," MPRA Paper 23350, University Library of Munich, Germany.
    10. Growiec, Katarzyna & Growiec, Jakub, 2014. "Social Capital, Trust, And Multiple Equilibria In Economic Performance," Macroeconomic Dynamics, Cambridge University Press, vol. 18(2), pages 282-315, March.
    11. İ. Semih Akçomak & Hanna Müller-Zick, 2018. "Trust and inventive activity in Europe: causal, spatial and nonlinear forces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(3), pages 529-568, May.
    12. Katarzyna Growiec & Jakub Growiec, 2011. "Trusting only whom you know, knowing only whom you trust: the joint impact of social capital and trust on individuals’ economic performance and happiness in CEE countries," NBP Working Papers 94, Narodowy Bank Polski.
    13. Wu, Fengyu & Nugent, Jeffrey B., 2024. "Mitigating Life Challenges to Subjective Well-being through Civic Engagement: Insights from a Global Perspective," GLO Discussion Paper Series 1489, Global Labor Organization (GLO).
    14. Anchorena, José & Anjos, Fernando, 2015. "Social ties and economic development," Journal of Macroeconomics, Elsevier, vol. 45(C), pages 63-84.
    15. Perotti, Roberto & Labartino, Giovanna, 2011. "Academic Dynasties: Decentralization and Familism in the Italian Academia," CEPR Discussion Papers 8645, C.E.P.R. Discussion Papers.
    16. Antoci Angelo & Sabatini Fabio & Sodini Mauro, 2009. "Will growth and technology destroy social interaction? The inverted U-shape hypothesis," wp.comunite 0057, Department of Communication, University of Teramo.
    17. Forte, Anabel & Peiró-Palomino, Jesús & Tortosa-Ausina, Emili, 2015. "Does social capital matter for European regional growth?," European Economic Review, Elsevier, vol. 77(C), pages 47-64.
    18. Kunze, Lars & Suppa, Nicolai, 2017. "Bowling alone or bowling at all? The effect of unemployment on social participation," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 213-235.
    19. Damiano Fiorillo & Nunzia Nappo, 2014. "Job satisfaction in Italy: individual characteristics and social relations," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(8), pages 683-704, August.
    20. Kravtsova, Maria & Libman, Alexander, 2023. "Historical family structure as a predictor of liberal voting: Evidence from a century of Russian history," Economic Systems, Elsevier, vol. 47(2).

    More about this item

    Keywords

    social network structure; social network dynamics; social trust; willingness to cooperate; economic performance; computational multi-agent model.;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:sgh:kaewps:2018036. 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: Dariusz Nojszewski (email available below). General contact details of provider: https://edirc.repec.org/data/kawawpl.html .

    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.