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2017 | nr 26 | 48
Tytuł artykułu

Social Network Structure and the Trade-off between Social Utility and Economic Performance

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Języki publikacji
Based on a novel computational multi-agent model, we identify the key mechanisms allowing the social network structure, summarized by four key social capital dimensions (network degree, centrality, bridging and bonding social capital), to affect individuals' social trust, willingness to cooperate, social utility and economic performance. We then trace how the individual-level outcomes aggregate up to the society level. Model setup draws from socio-economic theory and empirical findings based on our novel survey dataset. Results include aggregate-level comparative statics and individual-level correlations. We find, inter alia, that societies that either are better connected, exhibit a lower frequency of local cliques, or have a smaller share of family-based cliques, record relatively better economic performance. As long as family ties are sufficiently valuable, there is a trade-off between aggregate social utility and economic performance, and small world networks are then socially optimal. (original abstract)
Opis fizyczny
  • University of Social Sciences and Humanities, Warsaw, Poland
  • Warsaw School of Economics, Poland; National Bank of Poland
  • Warsaw School of Economics, Poland
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