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Empirical methods for networks data: social effects, network formation and measurement error

Author

Listed:
  • Arun Advani

    () (Institute for Fiscal Studies)

  • Bansi Malde

    () (Institute for Fiscal Studies and Institute for Fiscal Studies)

Abstract

In many contexts we may be interested in understanding whether direct connections between agents, such as declared friendships in a classroom or family links in a rural village, affect their outcomes. In this paper we review the literature studying econometric methods for the analysis of social networks. We begin by providing a common framework for models of social effects, a class that includes the `linear-in-means' local average model, the local aggregate model, and models where network statistics affect outcomes. We discuss identification of these models using both observational and experimental/quasi-experimental data. We then discuss models of network formation, drawing on a range of literatures to cover purely predictive models, reduced form models, and structural models, including those with a strategic element. Finally we discuss how one might collect data on networks, and the measurement error issues caused by sampling of networks, as well as measurement error more broadly.

Suggested Citation

  • Arun Advani & Bansi Malde, 2014. "Empirical methods for networks data: social effects, network formation and measurement error," IFS Working Papers W14/34, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:14/34
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    Cited by:

    1. Sandra Polania-Reyes, 2016. "Disentangling Social Capital: Lab-in-the-Field Evidence on Coordination, Networks, and Cooperation," Artefactual Field Experiments 00565, The Field Experiments Website.
    2. repec:bla:ecorec:v:93:y:2017:i::p:1-15 is not listed on IDEAS
    3. Yann Algan & Quoc-Anh Do & Nicolò Dalvit & Alexis Le Chapelain & Yves Zenou, 2015. "How Social Networks Shape Our Beliefs: A Natural Experiment among Future French Politicians," Sciences Po publications info:hdl:2441/78vacv4udu9, Sciences Po.
    4. Zenou, Yves, 2014. "Key Players," CEPR Discussion Papers 10277, C.E.P.R. Discussion Papers.
    5. repec:spr:sjecst:v:154:y:2018:i:1:d:10.1186_s41937-017-0011-x is not listed on IDEAS

    More about this item

    Keywords

    Networks; Social Eff ects; Peer Eff ects; Econometrics; Endogeneity; Measurement Error; Sampling Design;

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