Identification of peer effects through social networks

Arbeitspapier

We provide new results regarding the identification of peer effects. We consider an extended version of the linear-in-means model where each individual has his own specific reference group. Interactions are thus structured through a social network. We assume that correlated unobservables are either absent, or treated as fixed effects at the component level. In both cases, we provide easy-to-check necessary and sufficient conditions for identification. We show that endogenous and exogenous effects are generally identified under network interaction, although identification may fail for some particular structures. Monte Carlo simulations provide an analysis of the effects of some crucial characteristics of a network (i.e., density, intransitivity) on the estimates of social effects. Our approach generalizes a number of previous results due to Manski (1993), Moffitt (2001), and Lee (2006).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 2652

Classification and Topics

• Classification: Wirtschaft
• Subject: Soziale Beziehungen ; Soziales Netzwerk ; Ökonometrisches Modell ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bramoullé, Yann ; Djebbari, Habiba ; Fortin, Bernard
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/34487
• URN: urn:nbn:de:101:1-2008041694
• Last update: 10.03.2025, 11:43 AM CET