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Econometric Models of Network Formation

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  • Áureo de Paula

    (Institute for Fiscal Studies and University College London)

Abstract

This article provides a selective review on the recent literature on econometric models of network formation. The survey starts with a brief exposition on basic concepts and tools for the statistical description of networks. I then o?er a review of dyadic models, focussing on statistical models on pairs of nodes and describe several developments of interest to the econometrics literature. The article also presents a discussion of non-dyadic models where link formation might be in?uenced by the presence or absence of additional links, which themselves are subject to similar in?uences. This is related to the statistical literature on conditionally speci?ed models and the econometrics of game theoretical models. I close with a (non-exhaustive) discussion of potential areas for further development.

Suggested Citation

  • Áureo de Paula, 2020. "Econometric Models of Network Formation," CeMMAP working papers CWP4/20, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:cemmap:4/20
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    References listed on IDEAS

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