Poor households in rural areas are exposed to substantial weather shocks that can generate great fluctuations in income and consumption if insurance markets are not complete (Dercon and Christiaensen 2011, etc.).
Network analysis is a burgeoning sub-field in development economics as more and more attention is paid to how individual preferences and behaviors are influenced by decisions in the wider community. One example is the 2007 Kremer and Miguel paper that explores the determinants of take-up of deworming medicine by regressing take-up on the number of connections that the household has with other treated households.
One of the frustrations facing job seekers worldwide, but especially in many developing countries, is how much finding a job depends on who you know rather than what you know. For example, in work I’ve done with small enterprises in Sri Lanka, less than 2 percent of employers openly advertised the position they last hired – with the most common ways of finding a worker being to ask friends, neighbors or family members for suggestions. Clearly networks matter for finding jobs.