An Empirical Model of Dyadic Link Formation in a Network with Unobserved Heterogeneity

• 成果类型: Article
• 署名作者: Dzemski, Andreas
• 署名单位: University of Gothenburg
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_00805
• 发表日期: 2019-12
• 页码: 763-776
• 关键词: nonlinear panel models; testing transitivity; social networks; bias reduction; time

摘要

I study a dyadic linking model in which agents form directed links that exhibit homophily and reciprocity. A fixed-effect approach accounts for unobserved sources of degree heterogeneity. I consider specification testing and inference with respect to the homophily and reciprocity parameters. The specification test compares observed transitivity to predicted transitivity. All test statistics account for the presence of an incidental parameter by using formulas based on an asymptotic approximation. In an application to favor networks in Indian villages, the specification test detects that the dyadic linking model underestimates the true transitivity of the network.