Social networks and technology adoption: Evidence from church mergers in the U.S. Midwest

Abstract

How do social networks impact technology adoption? Exploiting a natural experiment in the mid-20th century U.S. Upper Midwest, we find that social network expansions, in the form of mergers between congregations of the American Lutheran Church, led to increased rates of agricultural technology adoption among farmers. In counties that experienced a merger, the number of farms using chemical fertilizer increased by over 5%, and the total fertilized acreage increased by over 10% relative to counties without a merger. These effects are consistent with increased information sharing between farmers due to congregational mergers.