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note
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There is an old and large literature that studies information diffusion (17-25). However, empirical evidence on the role of injection points is still sparse.
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4
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84880762833
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For experimental approaches to controlling for and analyzing the role of homophily in diffusion, see (26, 27).
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5
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84880728440
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note
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Individuals were allowed to name as many as five to eight network neighbors, depending on the category. The data exhibit almost no top-coding; fewer than 10% of the respondents named the maximum number of individuals in any single category.
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6
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84880756121
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note
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The main difference is the number of households: Villages that BSS entered had 223.2 households on average (SD = 56.17); those it did not enter had 165.8 households on average (SD = 48.95).
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84880763127
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note
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One could imagine that households need some time to think, or to process information from their neighbors, before adoption (21, 28). However, in our setting, one period (4 months) encompasses much of this decision time. It may be that in the long run (over a period of years) they would reconsider their decisions, which our model does not address, and so we do not capture long-run reactions to neighbors' experiences. For instance, it could be that there are coordination problems as people wait for others to participate before participating themselves. This seems unrealistic in our context: It takes about 1 to 2 years to learn how neighbors did with microfinance (whether they managed to repay, whether they benefited, etc.). Our data show that most of the adoption of microfinance takes place within the first year in a village (before the first cycle of loans is complete).
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