EconPapers    
Economics at your fingertips  
 

Social interactions and social preferences in social networks

Chih-Sheng Hsieh () and Xu Lin

Journal of Applied Econometrics, 2021, vol. 36, issue 2, 165-189

Abstract: We study social interactions when individuals hold altruistic preferences in social networks. Rich network features can be captured in the resulting best response function. The inward network links provide unique information for identifying the altruism effect. We demonstrate that the often ignored altruism is another serious confounding factor of peer effects. Specifically, the estimates of peer effects are approximately 36% smaller after taking into account social preferences. Furthermore, we could identify two types of effects caused by peers' outcomes: the spillover effects and the externality effects, which is impossible in a conventional social interactions model based on the self‐interest hypothesis.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1002/jae.2806

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:japmet:v:36:y:2021:i:2:p:165-189

Ordering information: This journal article can be ordered from
http://www3.intersci ... e.jsp?issn=0883-7252

Access Statistics for this article

Journal of Applied Econometrics is currently edited by M. Hashem Pesaran

More articles in Journal of Applied Econometrics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-08-30
Handle: RePEc:wly:japmet:v:36:y:2021:i:2:p:165-189