Endogenous Network Production Functions with Selectivity

William Horrace, Xiaodong Liu and Eleonora Patacchini

No 168, Center for Policy Research Working Papers from Center for Policy Research, Maxwell School, Syracuse University

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 endogeneity 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 Men’s Basketball team, where at any point in time the coach selects a lineup and the players interact strategically to win games.

Keywords: Stochastic Frontier Model; Spatial Autoregressive Model; Peer Effects; Endogenous Network Formation; Selectivity (search for similar items in EconPapers)
JEL-codes: C31 C44 D24 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2014-05
New Economics Papers: this item is included in nep-eff, nep-net and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://surface.syr.edu/cpr/200/ (application/pdf)

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:max:cprwps:168

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