Informal Networks and Formal Markets

I discuss the interaction between social networks and economic institutions:   how information flows through a network to help people learn about the availability of a formal market in the form of microfinance [1,2], as well as how the availability of that microfinance changes the structure of social networks [3,4].    The presence of the network is instrumental to gaining participation in the market, and the presence of that market erodes social networks – not just borrowing and lending networks but advice sharing and other networks.  

References 

[1] Banerjee, Abhijit, Arun G. Chandrasekhar, Esther Duflo, and Matthew O. Jackson. "The diffusion of microfinance." Science 341, no. 6144 (2013).

[2] Banerjee, Abhijit, Arun G. Chandrasekhar, Esther Duflo, and Matthew O. Jackson. "Using gossips to spread information: Theory and evidence from two randomized controlled trials." The Review of Economic Studies 86, no. 6 (2019): 2453-2490.

[3] Banerjee, Abhijit V., Emily Breza, Arun G. Chandrasekhar, Esther Duflo, Matthew O. Jackson and Cynthia Kinnan. "Changes in social network structure in response to exposure to formal credit markets." Available at SSRN 3245656 (2020).

[4] Jackson, Matthew O. The human network: How your social position determines your power, beliefs, and behaviors. Pantheon Press: New York, 2019.

Συνεδρία: 
Authors: 
Matthew O. Jackson
Room: 
1
Date: 
Friday, December 11, 2020 - 15:05 to 15:45

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