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Peer Effects in Networks: a Survey

Yann Bramoullé (), Habiba Djebbari () and Bernard Fortin ()
Additional contact information
Habiba Djebbari: Aix-Marseille Univ, CNRS, EHESS, Ecole Centrale, AMSE, Marseille, France. and IZA, https://www.amse-aixmarseille.fr/en/members/djebbari

No 1936, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: We survey the recent, fast-growing literature on peer effects in networks. An important recurring theme is that the causal identification of peer effects depends on the structure of the network itself. In the absence of correlated effects, the reflection problem is generally solved by network interactions even in non-linear, heterogeneous models. By contrast, microfounda-tions are generally not identified. We discuss and assess the various approaches developed by economists to account for correlated effects and network endogeneity in particular. We classify these approaches in four broad categories: random peers, random shocks, structural endogeneity and panel data. We review an emerging literature relaxing the assumption that the network is perfectly known. Throughout, we provide a critical reading of the existing literature and identify important gaps and directions for future research.

Keywords: social networks; peer effects; identification; causal effects; randomization; measurement errors (search for similar items in EconPapers)
JEL-codes: C31 C21 C90 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2020-01
New Economics Papers: this item is included in nep-ecm, nep-net, nep-soc and nep-ure
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Related works:
Working Paper: Peer Effects in Networks: A Survey (2020) Downloads
Working Paper: Peer Effects in Networks: A Survey (2020) Downloads
Working Paper: Peer Effects in Networks: a Survey (2019) Downloads
Working Paper: Peer Effects in Networks: a Survey (2019) Downloads
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