Endogenous Network Production Functions with Selectivity

William Horrace, Xiaodong Liu and Eleonora Patacchini

No 1406, EIEF Working Papers Series from Einaudi Institute for Economics and Finance (EIEF)

Abstract: We consider a production function model that transforms worker inputs into outputs through peer effect networks. The distinguishing features of this production model are that the network is formal and observable through worker scheduling, and selection into the network is done by a manager. We discuss identification and suggest a variety of estimation techniques. In particular, we tackle endogenity issues arising from selection into groups and exposure to common group factors by employing a polychotomous Heckman-type selection correction. We illustrate our method using data from the Syracuse University Menís Basketball team, where at any point in time the coach selects a lineup and the players interact strategically to win games.

Pages: 32 pages
Date: 2014, Revised 2014-09
New Economics Papers: this item is included in nep-cdm and nep-net
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Endogenous network production functions with selectivity (2016)
Working Paper: Endogenous Network Production Functions with Selectivity (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eie:wpaper:1406

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