Essays on the impact of social interactions on economic outcomes

dc.contributor.advisorKranton, Rachelen_US
dc.contributor.authorPerez Rojas, Nathaliaen_US
dc.contributor.departmentEconomicsen_US
dc.contributor.publisherDigital Repository at the University of Marylanden_US
dc.contributor.publisherUniversity of Maryland (College Park, Md.)en_US
dc.date.accessioned2007-09-28T14:57:33Z
dc.date.available2007-09-28T14:57:33Z
dc.date.issued2007-06-03en_US
dc.description.abstractThis dissertation consists of two essays, which address the question of how social interactions shape economic outcomes. The first essay examines crime and criminal networks. The second one studies immigration, assimilation, and ethnic enclaves. The first essay offers a formal model of crime. Criminals often do not act alone. Rather, they form networks of collaboration. How does law enforcement affect criminal activity and structure of those networks? Using a network game, I show that increased enforcement actually can lead to sparse networks and thereby to an increase in criminal activity. When criminal activity requires a certain degree of specialization, criminals will form sparse networks, which generate the highest level of crime and are the hardest to disrupt. I also show that heavy surveillance and large fines do not deter crime for these networks. The second essay examines the impact that residential location decisions have on economic outcomes of immigrants. About two thirds of the immigrants that arrived to the United States between 1997 and 2006 settled in six States only. Using a simultaneous-move game on residential choices I show that when all immigrants are unskilled they cluster in an enclave and earn very low wages, although they would be better off assimilating. Hence the enclave is `trap'. Introducing skill heterogeneity among immigrants reverses the result: the enclave equilibrium becomes socially preferred to assimilation.en_US
dc.format.extent373935 bytes
dc.format.mimetypeapplication/pdf
dc.identifier.urihttp://hdl.handle.net/1903/7197
dc.language.isoen_US
dc.subject.pqcontrolledEconomics, Theoryen_US
dc.subject.pqcontrolledEconomics, Generalen_US
dc.subject.pquncontrolledcrimeen_US
dc.subject.pquncontrollednetworksen_US
dc.subject.pquncontrolledimmigrationen_US
dc.subject.pquncontrolledethnic enclavesen_US
dc.subject.pquncontrollednetworks and gamesen_US
dc.titleEssays on the impact of social interactions on economic outcomesen_US
dc.typeDissertationen_US

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