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Identification and Estimation of Network models with Heterogeneous Interactions

In: The Econometrics of Networks

Author

Listed:
  • Tiziano Arduini
  • Eleonora Patacchini
  • Edoardo Rainone

Abstract

The authors generalize the standard linear-in-means model to allow for multiple types with between and within-type interactions. The authors provide a set of identification conditions of peer effects and consider a two-stage least squares estimation approach. Large sample properties of the proposed estimators are derived. Their performance in finite samples is investigated using Monte Carlo simulations.

Suggested Citation

  • Tiziano Arduini & Eleonora Patacchini & Edoardo Rainone, 2020. "Identification and Estimation of Network models with Heterogeneous Interactions," Advances in Econometrics, in: The Econometrics of Networks, volume 42, pages 3-25, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aecozz:s0731-905320200000042006
    DOI: 10.1108/S0731-905320200000042006
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    More about this item

    Keywords

    Networks; heterogeneous peer effects; spatial autoregressive model; two-stage least squares; efficiency; C13; C21; D62;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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