Yu and colleagues leverage population-level data to construct a large-scale, geographically defined, inter-household social network. Using a multilevel network model, they show that having social ties in close geographic proximity is associated with stable household asset conditions, while geographically distant ties correlate to changes in asset allocation. Notably, they find that localised network interactions are associated with an increase in wealth inequality at the regional level, demonstrating how macro-level inequality may arise from micro-level social processes.
- Shao-Tzu Yu
- Peng Wang
- Brian Houle
