• Media type: Report; E-Book
  • Title: Empirical methods for networks data: Social effects, network formation and measurement error
  • Contributor: Advani, Arun [Author]; Malde, Bansi [Author]
  • Published: London: Institute for Fiscal Studies (IFS), 2014
  • Language: English
  • DOI: https://doi.org/10.1920/wp.ifs.2014.1434
  • Keywords: Networks ; Measurement Error ; C81 ; C31 ; Z13 ; Econometrics ; Endogeneity ; Social Effects ; Peer Effects ; Sampling Design
  • Origination:
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  • Description: In many contexts we may be interested in understanding whether direct connections between agents, such as declared friendships in a classroom or family links in a rural village, affect their outcomes. In this paper we review the literature studying econometric methods for the analysis of social networks. We begin by providing a common framework for models of social effects, a class that includes the 'linear-in-means' local average model, the local aggregate model, and models where network statistics affect outcomes. We discuss identification of these models using both observational and experimental/quasi-experimental data. We then discuss models of network formation, drawing on a range of literatures to cover purely predictive models, reduced form models, and structural models, including those with a strategic element. Finally we discuss how one might collect data on networks, and the measurement error issues caused by sampling of networks, as well as measurement error more broadly.
  • Access State: Open Access