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Understanding Regression Versus Variance Tests For Social Interactions

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  • STEVEN N. DURLAUF
  • HISATOSHI TANAKA

Abstract

This article considers the relationship between the use of regressions and the use of variance contrast methods to uncover social interactions. We illustrate how these methods employ different identifying assumptions and are therefore complementary approaches. We also provide formal identification results that extend existing ones for the two methods. (JEL C12, C21, C23, Z13)

Suggested Citation

  • Steven N. Durlauf & Hisatoshi Tanaka, 2008. "Understanding Regression Versus Variance Tests For Social Interactions," Economic Inquiry, Western Economic Association International, vol. 46(1), pages 25-28, January.
    • Handle: RePEc:bla:ecinqu:v:46:y:2008:i:1:p:25-28
    DOI: 10.1111/j.1465-7295.2007.00076.x
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    References listed on IDEAS

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    1. Edward L. Glaeser & Bruce Sacerdote & José A. Scheinkman, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 507-548.
    2. Ivar Ekeland & James J. Heckman & Lars Nesheim, 2004. "Identification and Estimation of Hedonic Models," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages 60-109, February.
    3. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    4. William A. Brock & Steven N. Durlauf, 2001. "Discrete Choice with Social Interactions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 235-260.
    5. Ioannides, Yannis M. & Zabel, Jeffrey E., 2008. "Interactions, neighborhood selection and housing demand," Journal of Urban Economics, Elsevier, vol. 63(1), pages 229-252, January.
    6. Graham, Bryan S. & Hahn, Jinyong, 2005. "Identification and estimation of the linear-in-means model of social interactions," Economics Letters, Elsevier, vol. 88(1), pages 1-6, July.
    7. repec:dau:papers:123456789/6486 is not listed on IDEAS
    8. Cohen-Cole, Ethan, 2006. "Multiple groups identification in the linear-in-means model," Economics Letters, Elsevier, vol. 92(2), pages 157-162, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Georg D. Blind & Stefania Lottanti von Mandach, 2021. "Of pride and prejudice: agent learning under sticky and persistent stereotype," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(2), pages 381-410, April.
    2. Galbiati, Roberto & Zanella, Giulio, 2012. "The tax evasion social multiplier: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 96(5), pages 485-494.
    3. Xiaodong Liu, 2020. "GMM identification and estimation of peer effects in a system of simultaneous equations," Journal of Spatial Econometrics, Springer, vol. 1(1), pages 1-27, December.
    4. Lucifora, Claudio & Tonello, Marco, 2015. "Cheating and social interactions. Evidence from a randomized experiment in a national evaluation program," Journal of Economic Behavior & Organization, Elsevier, vol. 115(C), pages 45-66.
    5. Nathan Canen & Jacob Schwartz & Kyungchul Song, 2020. "Estimating local interactions among many agents who observe their neighbors," Quantitative Economics, Econometric Society, vol. 11(3), pages 917-956, July.
    6. repec:hal:spmain:info:hdl:2441/2jbidihgpo8bia7dbd5ipjlsi9 is not listed on IDEAS
    7. Auld, M. Christopher, 2011. "Effect of large-scale social interactions on body weight," Journal of Health Economics, Elsevier, vol. 30(2), pages 303-316, March.

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    More about this item

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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