Advanced Search
MyIDEAS: Login to save this paper or follow this series

Dynamic linear economies with social interactions


Author Info

  • ÖZGÜR, Onur
  • BISIN, Alberto
Registered author(s):


    Social interactions arguably provide a rationale for several important phenomena, from smoking and other risky behavior in teens to e.g., peer effects in school performance. We study social interactions in dynamic economies. For these economies, we provide existence (Markov Perfect Equilibrium in pure strategies), ergodicity, and welfare results. Also, we characterize equilibria in terms of agents' policy function, spatial equilibrium correlations and social multiplier effects, depending on the nature of interactions. Most importantly, we study formally the issue of the identification of social interactions, with special emphasis on the restrictions imposed by dynamic equilibrium conditions.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 2011-03.

    as in new window
    Length: 87 pages
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:mtl:montde:2011-03

    Contact details of provider:
    Postal: CP 6128, Succ. Centre-Ville, Montréal, Québec, H3C 3J7
    Phone: (514) 343-6540
    Fax: (514) 343-5831
    Web page:
    More information through EDIRC

    Related research

    Keywords: Conditional covariance stationarity; conformity; ergodicity; habits; identification; local and global interactions; Markov perfect equilibrium; social interactions; social norms; social processes; social status; spatial correlations.;

    Find related papers by JEL classification:


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Grajzl, Peter & Baniak, Andrzej, 2012. "Mandating behavioral conformity in social groups with conformist members," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 479-493.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:mtl:montde:2011-03. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharon BREWER).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.