Production Efforts in Large Indian Cities: A Network-based Approach

Type Journal Article - Journal of Interdisciplinary Economics
Title Production Efforts in Large Indian Cities: A Network-based Approach
Author(s)
Publication (Day/Month/Year) 2013
URL http://jie.sagepub.com/content/25/1-2/117.short
Abstract
In this article we construct a network of roads connecting large Indian cities and we evaluate this network’s overall performance. We consider a model where the production efforts of connected cities are strategic complements, and we relate the equilibrium effort pro?le to a well known centrality measure, the Katz-Bonacich centrality. We then make use of this result to compute the level of efforts of different cities in the current network and identify which city contributes most to overall efforts, which existing road is the most in?uential and which new road should be constructed in priority. Our results shed light on the importance of relatively small cities on aggregate efforts. Our exercise illustrates how network details might generate unexpected effects.

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