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Estimating Peer Effects Using Partial Network Data

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  • Vincent Boucher
  • Aristide Houndetoungan

Abstract

We study the estimation of peer effects through social networks when researchers do not observe the entire network structure. Special cases include sampled networks, censored networks, and misclassified links. We assume that researchers can obtain a consistent estimator of the distribution of the network. We show that this assumption is sufficient for estimating peer effects using a linear-in-means model. We provide an empirical application to the study of peer effects on students' academic achievement using the widely used Add Health database, and show that network data errors have a large downward bias on estimated peer effects.

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  • Vincent Boucher & Aristide Houndetoungan, 2025. "Estimating Peer Effects Using Partial Network Data," Papers 2509.08145, arXiv.org.
  • Handle: RePEc:arx:papers:2509.08145
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    References listed on IDEAS

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    1. Angelo Mele, 2017. "A Structural Model of Dense Network Formation," Econometrica, Econometric Society, vol. 85, pages 825-850, May.
    2. Bryan S. Graham, 2017. "An econometric model of network formation with degree heterogeneity," CeMMAP working papers 08/17, Institute for Fiscal Studies.
    3. Vincent Boucher & Ismael Mourifié, 2017. "My friend far, far away: a random field approach to exponential random graph models," Econometrics Journal, Royal Economic Society, vol. 20(3), pages 14-46, October.
    4. Lung-Fei Lee, 2004. "Asymptotic Distributions of Quasi-Maximum Likelihood Estimators for Spatial Autoregressive Models," Econometrica, Econometric Society, vol. 72(6), pages 1899-1925, November.
    5. Alan Griffith, 2022. "Name Your Friends, but Only Five? The Importance of Censoring in Peer Effects Estimates Using Social Network Data," Journal of Labor Economics, University of Chicago Press, vol. 40(4), pages 779-805.
    6. Bryan S. Graham, 2017. "An Econometric Model of Network Formation With Degree Heterogeneity," Econometrica, Econometric Society, vol. 85, pages 1033-1063, July.
    7. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-1988, November.
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