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Identification of Social Effects through Networks and Groups

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  • Yann Bramoullé

    (Economics Laval University and CIRPÉE)

  • Bernard Fortin

    (Economics Laval University and CIRPÉE)

  • Habiba Djebbari

    ()
    (Economics Laval University, CIRPÉE and IZA)

Abstract

In this paper, we propose new solutions to the well-known problem of identification of social effects. Manski (1993) showed that endogenous and contextual (or exogenous) social effects cannot, in general, be disentangled in the linear-in-means model. Our main innovation is that we allow individuals to have different reference groups. That is, social interactions are structured through a network. We have two main results. First, if the network is not partitioned into groups, the model is identified. Second, even when individuals interact in groups, as soon as two groups have different sizes the model is identified. This second result is particularly surprising since it means that endogenous and contextual effects could, in principle, be disentangled with traditional data

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Bibliographic Info

Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2006 with number 206.

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Date of creation: 04 Jul 2006
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Handle: RePEc:sce:scecfa:206

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