Resolving the Identification Problem in Linear Social Interactions Models: Modeling with Between-Group Spillovers
The linear-in-means model has been a theoretical and empirical workhorse of the social interactions field. As was noted by Manski (1993), the collinearity between group-level 'contextual' and 'endogenous' effects leads to an inability to identify the structural parameters of this model. Manski called this the 'reflection' problem. This paper suggests that Manksi’s reflection problem is unique to a special case of a more general context in which agents care about multiple reference groups. Specifically, the identification problem is resolved through a model generalization to include between-group and within-group effects.
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.:
- Edward E. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995.
"Crime and Social Interactions,"
Harvard Institute of Economic Research Working Papers
1738, Harvard - Institute of Economic Research.
- Yannis M. Ioannides & Jeffrey E. Zabel, 2003.
"Neighbourhood effects and housing demand,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 18(5), pages 563-584.
- Yannis M. Ioannides & Jeffrey E. Zabel, 2000. "Neighborhood Effects and Housing Demand," Discussion Papers Series, Department of Economics, Tufts University 0012, Department of Economics, Tufts University.
- Ioannides, Yannis M., 2002.
"Residential neighborhood effects,"
Regional Science and Urban Economics,
Elsevier, vol. 32(2), pages 145-165, March.
- Yannis M. Ioannides, 1999. "Residential Neighborhood Effects," Discussion Papers Series, Department of Economics, Tufts University 9912, Department of Economics, Tufts University.
- Anne C. Case & Lawrence F. Katz, 1991.
"The Company You Keep: The Effects of Family and Neighborhood on Disadvantaged Youths,"
NBER Working Papers
3705, National Bureau of Economic Research, Inc.
- 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.
- Yannis M Ioannides & Jeffrey E Zabel, 2002.
"Interactions, Neighborhood Selection, and Housing Demand,"
02-19, Center for Economic Studies, U.S. Census Bureau.
- Ioannides, Yannis M. & Zabel, Jeffrey E., 2008. "Interactions, neighborhood selection and housing demand," Journal of Urban Economics, Elsevier, vol. 63(1), pages 229-252, January.
- Yannis M. Ioannides & Jeffrey E. Zabel, 2002. "Interaction, Neighborhood Selection and Housing Demand," Discussion Papers Series, Department of Economics, Tufts University 0208, Department of Economics, Tufts University.
- Melvyn Weeks & Sriya Iyer, 2004.
"Multiple social interactions and reproductive externalities: An investigation of fertility behaviour in Kenya,"
Econometric Society 2004 Latin American Meetings
143, Econometric Society.
- Iyer, S. & Weeks, M., 2004. "Multiple Social Interaction and Reproductive Externalities: An Investigation of Fertility Behaviour in Kenya," Cambridge Working Papers in Economics 0461, Faculty of Economics, University of Cambridge.
- Datcher, Linda P, 1982. "Effects of Community and Family Background on Achievement," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 32-41, February.
- Durlauf,S.N., 2003.
17, Wisconsin Madison - Social Systems.
- Conley, T.G. & Topa, G., 1999. "Socio-Economic Distance and Spatial Patterns in Unemployment," Working Papers 99-04, C.V. Starr Center for Applied Economics, New York University.
- repec:att:wimass:9127 is not listed on IDEAS
- William A. Brock & Steven N. Durlauf, 2000.
00-05-028, Santa Fe Institute.
- Brock,W.A. & Durlauf,S.N., 2000.
"Discrete choice with social interactions,"
7, Wisconsin Madison - Social Systems.
- R. D. Plotnick & S. D. Hoffman, . "The Effect of Neighborhood Characteristics on Young Adult Outcomes: Alternative Estimates," Institute for Research on Poverty Discussion Papers 1106-96, University of Wisconsin Institute for Research on Poverty.
- 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.
- Mary Corcoran & Roger Gordon & Deborah Laren & Gary Solon, 1992. "The Association between Men's Economic Status and Their Family and Community Origins," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 575-601.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpot:0501001. 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: (EconWPA)
If references are entirely missing, you can add them using this form.