Germs, Social Networks, and Growth

Abstract Does the pattern of social connections between individuals matter for macroeconomic outcomes? If so, where do differences in these patterns come from and how large are their effects? Using network analysis tools, we explore different structures affect technology diffusion thereby a country’s rate growth. The correlation high-diffusion networks income is strongly positive. But when use model to isolate effect change on growth, can be positive, negative, or zero. reason that diffuse both ideas disease. Low-diffusion have evolved countries disease prevalent because limited connectivity protects residents epidemics. low-diffusion low-disease environment compromises good ideas. In general, fit economic epidemiological environment. Trying one country mimic those higher-income may well counterproductive.