Testing Unilateral and Bilateral Link Formation
Empirical analysis of social networks is often based on self-reported links from survey data. How we interpret such data is crucial for drawing correct inference on network effects. We propose a method for testing whether survey responses can safely be interpreted as a link and, if so, whether links are generated by a unilateral or bilateral link formation process. We present two empirical illustrations of the test on risk-sharing links in Tanzania and on communication among Indian farmers, respectively, demonstrating the ability of the methodology to discriminate between competing data-generating processes.
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|Date of creation:||Sep 2014|
|Publication status:||Published in Economic Journal, Wiley, 2014, 124 (579), pp.954-976. <10.1111/ecoj.12071>|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00825261|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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