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Cavalcanti, Tiago Vanderlei; Giannitsarou, Chrysi; Johnson, CR (2017)
Publisher: Economic Theory
Languages: English
Types: Article
Subjects: consensus, convergence, endogenous growth models, network theory
This is the final version of the article. It first appeared from Springer via http://dx.doi.org/10.1007/s00199-016-0992-1 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.
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