The Sum Is Greater Than the Parts: Doubling Shared Prosperity in Indonesia Through Local and Global Integration
    Program, Harvard Kennedy School Indonesia. 2013. The Sum Is Greater Than the Parts: Doubling Shared Prosperity in Indonesia Through Local and Global Integration. The Ash Center for Democratic Governance and Innovation. Download the full book Abstract

    Harvard Kennedy School Indonesia Program, 2013 

    Published in 2013, a new book from the Harvard Kennedy School Indonesia Program builds on findings of the 2010 report, From Reformasi to Institutional Transformation: A Strategic Assessment of Indonesia's Prospects for Growth, Equity, and Democratic GovernanceView the virtual book tour from the HKS Library.

    Rema Hanna, October 2012 

    This paper uses a unique data-set from Indonesia on what individuals know about the income distribution in their village to test theories such as Jackson and Rogers (2007) that link information aggregation in networks to the structure of the network. The observed patterns are consistent with a basic diffusion model: more central individuals are better informed, and individuals are able to better evaluate the poverty status of those to whom they are more socially proximate. To understand what the theory predicts for cross-village patterns, this paper estimates a simple diffusion model using within-village variation, simulate network-level diffusion under this model for the over 600 different networks in our data, and use this simulated data to gauge what the simple diffusion model predicts for the cross-village relationship between information diffusion and network characteristics (e.g. clustering, density). The coefficients in these simulated regressions are generally consistent with relationships suggested in previous theoretical work, even though in our setting formal analytical predictions have not been derived. This paper then shows that the qualitative predictions from the simulated model largely match the actual data in the sense that we obtain similar results both when the dependent variable is an empirical measure of the accuracy of a village’s aggregate information and when it is the simulation outcome. Finally, this paper considers a real-world application to community based targeting, where villagers chose which households should receive an anti-poverty program, and show that networks with better diffusive properties (as predicted by our model) differentially benefit from community based targeting policies.