IDEAS home Printed from https://ideas.repec.org/a/tpr/restat/v102y2020i2p368-380.html
   My bibliography  Save this article

Treatment and Spillover Effects Under Network Interference

Author

Listed:
  • Michael P. Leung

    (University of Southern California)

Abstract

We study nonparametric and regression estimators of treatment and spillover effects when interference is mediated by a network. Inference is nonstandard due to dependence induced by treatment spillovers and network-correlated effects. We derive restrictions on the network degree distribution under which the estimators are consistent and asymptotically normal and show they can be verified under a strategic model of network formation. We also construct consistent variance estimators robust to heteroskedasticity and network dependence. Our results allow for the estimation of spillover effects using data from only a single, possibly sampled, network.

Suggested Citation

  • Michael P. Leung, 2020. "Treatment and Spillover Effects Under Network Interference," The Review of Economics and Statistics, MIT Press, vol. 102(2), pages 368-380, May.
  • Handle: RePEc:tpr:restat:v:102:y:2020:i:2:p:368-380
    as

    Download full text from publisher

    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/rest_a_00818
    Download Restriction: Access to PDF is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bryan S. Graham, 2008. "Identifying Social Interactions Through Conditional Variance Restrictions," Econometrica, Econometric Society, vol. 76(3), pages 643-660, May.
    2. Charles F. Manski, 2013. "Identification of treatment response with social interactions," Econometrics Journal, Royal Economic Society, vol. 16(1), pages 1-23, February.
    3. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2010. "Social Incentives in the Workplace," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(2), pages 417-458.
    4. Hirano, Keisuke & Hahn, Jinyong, 2010. "Design of randomized experiments to measure social interaction effects," Economics Letters, Elsevier, vol. 106(1), pages 51-53, January.
    5. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2009. "Social Connections and Incentives in the Workplace: Evidence From Personnel Data," Econometrica, Econometric Society, vol. 77(4), pages 1047-1094, July.
    6. Angelo Mele, 2010. "A structural model of segregation in social networks," CeMMAP working papers CWP32/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    7. Susan Athey & Dean Eckles & Guido W. Imbens, 2018. "Exact p-Values for Network Interference," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 113(521), pages 230-240, January.
    8. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    9. Bramoullé, Yann & Djebbari, Habiba & Fortin, Bernard, 2009. "Identification of peer effects through social networks," Journal of Econometrics, Elsevier, vol. 150(1), pages 41-55, May.
    10. Sobel, Michael E., 2006. "What Do Randomized Studies of Housing Mobility Demonstrate?: Causal Inference in the Face of Interference," Journal of the American Statistical Association, American Statistical Association, vol. 101, pages 1398-1407, December.
    11. Esther Duflo & Pascaline Dupas & Michael Kremer, 2011. "Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," American Economic Review, American Economic Association, vol. 101(5), pages 1739-1774, August.
    12. Paul Goldsmith-Pinkham & Guido W. Imbens, 2013. "Social Networks and the Identification of Peer Effects," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 253-264, July.
    13. Leonardo Bursztyn & Florian Ederer & Bruno Ferman & Noam Yuchtman, 2014. "Understanding Mechanisms Underlying Peer Effects: Evidence From a Field Experiment on Financial Decisions," Econometrica, Econometric Society, vol. 82(4), pages 1273-1301, July.
    14. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
    15. Debopam Bhattacharya & Pascaline Dupas & Shin Kanaya, 2013. "Estimating the Impact of Means-tested Subsidies under Treatment Externalities with Application to Anti-Malarial Bednets," Economics Series Working Papers 646, University of Oxford, Department of Economics.
    16. Esther Duflo & Emmanuel Saez, 2003. "The Role of Information and Social Interactions in Retirement Plan Decisions: Evidence from a Randomized Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 815-842.
    17. Emily Oster & Rebecca Thornton, 2012. "Determinants Of Technology Adoption: Peer Effects In Menstrual Cup Take-Up," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1263-1293, December.
    18. Fafchamps, Marcel & Gubert, Flore, 2007. "The formation of risk sharing networks," Journal of Development Economics, Elsevier, vol. 83(2), pages 326-350, July.
    19. Pascaline Dupas, 2014. "Short‐Run Subsidies and Long‐Run Adoption of New Health Products: Evidence From a Field Experiment," Econometrica, Econometric Society, vol. 82(1), pages 197-228, January.
    20. Hoff P.D. & Raftery A.E. & Handcock M.S., 2002. "Latent Space Approaches to Social Network Analysis," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 1090-1098, December.
    21. Scott E. Carrell & Bruce I. Sacerdote & James E. West, 2013. "From Natural Variation to Optimal Policy? The Importance of Endogenous Peer Group Formation," Econometrica, Econometric Society, vol. 81(3), pages 855-882, May.
    22. Nicholas Christakis & James Fowler & Guido Imbens & Karthik Kalyanaraman, 2010. "An empirical model for strategic network formation," CeMMAP working papers CWP16/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    23. Lan Liu & Michael G. Hudgens, 2014. "Large Sample Randomization Inference of Causal Effects in the Presence of Interference," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 109(505), pages 288-301, March.
    24. Hudgens, Michael G. & Halloran, M. Elizabeth, 2008. "Toward Causal Inference With Interference," Journal of the American Statistical Association, American Statistical Association, vol. 103, pages 832-842, June.
    25. Bryan S. Graham, 2016. "Homophily and Transitivity in Dynamic Network Formation," NBER Working Papers 22186, National Bureau of Economic Research, Inc.
    26. repec:dau:papers:123456789/4392 is not listed on IDEAS
    27. Sarah Baird & J. Aislinn Bohren & Craig McIntosh & Berk Özler, 2018. "Optimal Design of Experiments in the Presence of Interference," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 844-860, December.
    28. Robert M. Bond & Christopher J. Fariss & Jason J. Jones & Adam D. I. Kramer & Cameron Marlow & Jaime E. Settle & James H. Fowler, 2012. "A 61-million-person experiment in social influence and political mobilization," Nature, Nature, vol. 489(7415), pages 295-298, September.
    29. Natalia Lazzati, 2015. "Treatment response with social interactions: Partial identification via monotone comparative statics," Quantitative Economics, Econometric Society, vol. 6(1), pages 49-83, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gonzalo Vazquez-Bare, 2017. "Identification and Estimation of Spillover Effects in Randomized Experiments," Papers 1711.02745, arXiv.org, revised Jan 2022.
    2. Braun, Martin & Verdier, Valentin, 2023. "Estimation of spillover effects with matched data or longitudinal network data," Journal of Econometrics, Elsevier, vol. 233(2), pages 689-714.
    3. Vazquez-Bare, Gonzalo, 2023. "Identification and estimation of spillover effects in randomized experiments," Journal of Econometrics, Elsevier, vol. 237(1).
    4. Michael P. Leung, 2022. "Causal Inference Under Approximate Neighborhood Interference," Econometrica, Econometric Society, vol. 90(1), pages 267-293, January.
    5. Davide Viviano, 2020. "Experimental Design under Network Interference," Papers 2003.08421, arXiv.org, revised Jul 2022.
    6. Davide Viviano, 2019. "Policy Targeting under Network Interference," Papers 1906.10258, arXiv.org, revised Apr 2024.
    7. Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2020. "Peer Effects in Networks: A Survey," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 603-629, August.
    8. Bryan S. Graham, 2019. "Network Data," Papers 1912.06346, arXiv.org.
    9. Michael P. Leung & Hyungsik Roger Moon, 2019. "Normal Approximation in Large Network Models," Papers 1904.11060, arXiv.org, revised Oct 2024.
    10. 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.
    11. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    12. Zhaonan Qu & Ruoxuan Xiong & Jizhou Liu & Guido Imbens, 2021. "Semiparametric Estimation of Treatment Effects in Observational Studies with Heterogeneous Partial Interference," Papers 2107.12420, arXiv.org, revised Jun 2024.
    13. Boucher, Vincent & Fortin, Bernard, 2015. "Some Challenges in the Empirics of the Effects of Networks," IZA Discussion Papers 8896, Institute of Labor Economics (IZA).
    14. Davide Viviano & Jess Rudder, 2020. "Policy design in experiments with unknown interference," Papers 2011.08174, arXiv.org, revised May 2024.
    15. Horrace, William C. & Liu, Xiaodong & Patacchini, Eleonora, 2016. "Endogenous network production functions with selectivity," Journal of Econometrics, Elsevier, vol. 190(2), pages 222-232.
    16. Sarah Baird & Aislinn Bohren & Craig McIntosh & Berk Ozler, 2017. "Optimal Design of Experiments in the Presence of Interference*, Second Version," PIER Working Paper Archive 16-025, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 30 Nov 2017.
    17. Bonan, Jacopo & Battiston, Pietro & Bleck, Jaimie & LeMay-Boucher, Philippe & Pareglio, Stefano & Sarr, Bassirou & Tavoni, Massimo, 2021. "Social interaction and technology adoption: Experimental evidence from improved cookstoves in Mali," World Development, Elsevier, vol. 144(C).
    18. Han, Kevin & Basse, Guillaume & Bojinov, Iavor, 2024. "Population interference in panel experiments," Journal of Econometrics, Elsevier, vol. 238(1).
    19. Antonia Grohmann & Sahra Sakha, 2015. "The Effect of Peer Observation on Consumption Choices: Experimental Evidence," Discussion Papers of DIW Berlin 1525, DIW Berlin, German Institute for Economic Research.
    20. Áureo de Paula, 2015. "Econometrics of network models," CeMMAP working papers CWP52/15, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:102:y:2020:i:2:p:368-380. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kelly McDougall (email available below). General contact details of provider: https://direct.mit.edu/journals .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.