IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Social Interactions - Is There Really an Identification Problem?

  • Kalckreuth, Ulf von
Registered author(s):

    It is an everyday experience that the behavior of individuals belonging to the same social group tends to be correlated. In his seminal work, Manski differentiates two basic types of feedback between group and individual and he maintains that it is not possible to discriminate between the two by mere observation. What is more: Only under very favorable conditions can social effects be distinguished from other reasons for correlations within social groups, such as selectivity. Manski's forceful critique challenges not only the numerous empirical efforts to understand the nature of social interactions. In the light of his arguments many theoretical disputes in the social sciences suddenly appear to be rather futile. Thus, a further analysis of his position seems well justified. The result is quite encouraging. Manski himself renders the solution to his identification problem impossible by imposing a very special assumption. In his econometric model, social effects do not flow from the outcomes realized within the group, but from their respective conditional mathematical expectations. By substituting this critical assumption by a more realistic formulation, a fully identified model is obtained. For this modified model, FIML estimators of all parameters are explicitly derived. The new estimator allows to differentiate clearly between endogenous social effects, exogenous social effects and correlated effects.

    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: http://ub-madoc.bib.uni-mannheim.de/1043/1/567.pdf
    Download Restriction: no

    Paper provided by Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre in its series Discussion Papers with number 567.

    as
    in new window

    Length:
    Date of creation: 1999
    Date of revision:
    Handle: RePEc:mnh:vpaper:1043
    Contact details of provider: Postal: D-68131 Mannheim
    Phone: +49-621-181-2773
    Fax: +49-621-181-2772
    Web page: http://www.vwl.uni-mannheim.de/institut/
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
    2. Durlauf, S.N., 1992. "A Theory of Persistent Income Inequality," Papers 47, Stanford - Institute for Thoretical Economics.
    3. Case, A.C. & Katz, L.F., 1991. "The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths," Harvard Institute of Economic Research Working Papers 1555, Harvard - Institute of Economic Research.
    4. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
    5. Case, Anne C, 1991. "Spatial Patterns in Household Demand," Econometrica, Econometric Society, vol. 59(4), pages 953-65, July.
    6. Alessie, Rob & Kapteyn, Arie, 1991. "Habit Formation, Interdependent References and Demographic Effects in the Almost Ideal Demand System," Economic Journal, Royal Economic Society, vol. 101(406), pages 404-19, May.
    7. Griliches, Zvi, 1974. "Errors in Variables and Other Unobservables," Econometrica, Econometric Society, vol. 42(6), pages 971-98, November.
    8. George J. Borjas, 1991. "Ethnic Capital and Intergenerational Mobility," NBER Working Papers 3788, National Bureau of Economic Research, Inc.
    9. Goldberger, Arthur S, 1972. "Structural Equation Methods in the Social Sciences," Econometrica, Econometric Society, vol. 40(6), pages 979-1001, November.
    Full references (including those not matched with items on IDEAS)

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

    When requesting a correction, please mention this item's handle: RePEc:mnh:vpaper:1043. 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: (Katharina Rautenberg)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.