![]() Picard, Pierre M ![]() E-print/Working paper (2017) This paper studies social-tie formation when individuals care about the geographical location of other individuals. In our model, the intensity of social interactions can be chosen at the same time as ... [more ▼] This paper studies social-tie formation when individuals care about the geographical location of other individuals. In our model, the intensity of social interactions can be chosen at the same time as friends. We characterize the equilibrium in terms of both social interactions and social capital (the value of social interactions offered by each agent) for a general distribution of individuals in the urban geographical space. We show that greater geographical dispersion decreases the incentives to socially interact. We also show that the equilibrium frequency of interactions is lower than the effcient one. Using a unique geo-coded dataset of friendship networks among adolescents in the United States, we estimate the model and validate that agents interact less than the social first best optimum. Our policy analysis suggests that, given the same cost, subsidizing social interactions yields a higher total welfare than subsidizing transportation costs. [less ▲] Detailed reference viewed: 46 (0 UL)![]() ; Picard, Pierre M ![]() Article for general public (2015) Little is known about how social interactions are affected by geographical distance. This column argues that students tend to interact more with those who are highly central in the network of social ... [more ▼] Little is known about how social interactions are affected by geographical distance. This column argues that students tend to interact more with those who are highly central in the network of social contacts, and who are geographically closer. Geographical distance is then a hinder to social interactions. [less ▲] Detailed reference viewed: 169 (16 UL)![]() ; Picard, Pierre M ![]() E-print/Working paper (2015) We develop a theoretical model where the existence and intensity of dyadic contacts depend on location. We show that agents tend to interact more with agents that are highly central in the network of ... [more ▼] We develop a theoretical model where the existence and intensity of dyadic contacts depend on location. We show that agents tend to interact more with agents that are highly central in the network of social contacts and that are geographically closer. Using a unique geo-coded dataset of friendship networks in the United States, we find evidence consistent with this model. The main empirical challenge, which is the possible endogenous network formation, is tackled by employing a Bayesian methodology that allows to estimate simultaneously network formation and intensity of network contacts. [less ▲] Detailed reference viewed: 123 (14 UL) |
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