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Treatment Effect Accounting for Network Changes

Author

Listed:
  • Margherita Comola

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UP11 - Université Paris-Sud - Paris 11)

  • Silvia Prina

    (Northeastern University [Boston])

Abstract

Networks may rewire in response to interventions. We propose a measure of the treatment effect when an intervention affects the structure of a social network. We develop a treatment-response model that incorporates dynamic peer effects and provide its identification conditions and the associated instrumental-variable strategy. We illustrate our estimation procedure using a panel dataset containing information on a financial network before and after a field experiment that randomized access to savings accounts. Results show that neglecting the network change results in underestimation of the impact of the intervention and the role played by informal networks through which the intervention diffuses.

Suggested Citation

  • Margherita Comola & Silvia Prina, 2021. "Treatment Effect Accounting for Network Changes," PSE-Ecole d'économie de Paris (Postprint) halshs-02973059, HAL.
    • Handle: RePEc:hal:pseptp:halshs-02973059
    DOI: 10.1162/rest_a_00908
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    Cited by:

    1. Rhys Murrian & Paul A. Raschky & Klaus Ackermann, 2024. "Friends, Key Players and the Adoption and Use of Experience Goods," Monash Economics Working Papers 2024-17, Monash University, Department of Economics.
    2. Chen, Xi & Qiu, Yun & Shi, Wei & Yu, Pei, 2022. "Key links in network interactions: Assessing route-specific travel restrictions in China during the Covid-19 pandemic," China Economic Review, Elsevier, vol. 73(C).
    3. Hensel, Lukas & Tekleselassie, Tsegay & Witte, Marc J., 2021. "Formalized Employee Search and Labor Demand," IZA Discussion Papers 14839, Institute of Labor Economics (IZA).
    4. Zenou, Yves & Biavaschi, Costanza & Giulietti, Corrado, 2021. "Social Networks and (Political) Assimilation in the Age of Mass Migration," CEPR Discussion Papers 16182, C.E.P.R. Discussion Papers.
    5. Song, Suyong & Wang, Jiawei (Brooke), 2024. "Boardroom networks and corporate investment," Journal of Corporate Finance, Elsevier, vol. 84(C).
    6. Mundt, Philipp, 2021. "The formation of input–output architecture: Evidence from the European Union," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 89-104.
    7. Heitzig, Chris & O’Keeffe-O’Donovan, Rossa, 2024. "Spillover Effects and Diffusion of Savings Groups," World Development, Elsevier, vol. 173(C).
    8. Comola, Margherita & Inguaggiato, Carla & Mendola, Mariapia, 2021. "Learning about Farming: Innovation and Social Networks in a Resettled Community in Brazil," IZA Discussion Papers 14092, Institute of Labor Economics (IZA).
    9. Lnu,Anukriti & Herrera-Almanza,Catalina & Karra,Mahesh Venkat, 2022. "Bring a Friend : Strengthening Women’s Social Networks and Reproductive Autonomy in India," Policy Research Working Paper Series 10107, The World Bank.
    10. Comola, Margherita & Inguaggiato, Carla & Mendola, Mariapia, 2024. "Social networks and economic transformation: Evidence from a resettled village in Brazil," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 17-34.
    11. Murphy, David M.A., 2023. "Sobriety, social capital, and village network structures," World Development, Elsevier, vol. 166(C).
    12. Eric Auerbach & Yong Cai, 2022. "Heterogeneous Treatment Effects for Networks, Panels, and other Outcome Matrices," Papers 2205.01246, arXiv.org, revised Oct 2022.
    13. Eric Auerbach & Yong Cai, 2023. "Identifying Socially Disruptive Policies," Papers 2306.15000, arXiv.org, revised Jun 2023.

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