Document Type
Article
Department/Program
Mathematics
Journal Title
ECONOMIC THEORY
Pub Date
7-2017
Volume
64
Issue
1
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.
Recommended Citation
Cavalcanti, Tiago V. V.; Giannitsarou, Chryssi; and Johnson, Charles R., Network cohesion (2017). ECONOMIC THEORY, 64(1).
10.1007/s00199-016-0992-1
DOI
10.1007/s00199-016-0992-1
