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The cost of segregation in (social) networks

Allouch, Nizar (2017) The cost of segregation in (social) networks. Games and Economic Behavior, 106 . pp. 329-342. ISSN 0899-8256. (doi:10.1016/j.geb.2017.08.012) (KAR id:63229)

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Abstract

This paper investigates the welfare effect of income redistribution in the private provision of public goods on networks. We first show that the welfare effect of income redistribution is determined by Bonacich centrality. Then we develop an index based on the network structure of interactions, which, roughly speaking, measures the welfare effect of income redistribution confined to a component of contributors. The proposed index vanishes when applied to large components of contributors that display special segregated interactions, which suggests an “asymptotic neutrality” of redistributive policies.

JEL classification

C72; D31; H41

Item Type: Article
DOI/Identification number: 10.1016/j.geb.2017.08.012
Uncontrolled keywords: public goods; income redistribution; welfare effect; networks; Bonacich transfer index
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Nizar Allouch
Date Deposited: 05 Sep 2017 10:06 UTC
Last Modified: 06 May 2020 03:16 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/63229 (The current URI for this page, for reference purposes)
Allouch, Nizar: https://orcid.org/0000-0001-8046-4662
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