Identification and Estimation of Network models with Heterogeneous Interactions

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.

Citation

Arduini, T., Patacchini , E. and Rainone, E. (2020), "Identification and Estimation of Network models with Heterogeneous Interactions", de Paula, Á., Tamer, E. and Voia, M.-C. (Ed.) The Econometrics of Networks (Advances in Econometrics, Vol. 42), Emerald Publishing Limited, Leeds, pp. 3-25. https://doi.org/10.1108/S0731-905320200000042006