Social Networks with Misclassified or Unobserved Links
Arthur Lewbel (),
Xi Qu and
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Xi Qu: Shanghai Jiao Tong University
No 1004, Boston College Working Papers in Economics from Boston College Department of Economics
We identify and estimate social network models when network links are either misclassified or unobserved in the data. First, we derive conditions under which some misclassification of links does not interfere with the consistency or asymptotic properties of standard instrumental variable estimators of social effects. Second, we construct a consistent estimator of social effects in a model where network links are not observed in the data at all. Our method does not require repeated observations of individual network members. We apply our estimator to data from Tennessee's Student/Teacher Achievement Ratio (STAR) Project. Without observing the latent network in each classroom, we identify and estimate peer and contextual effects on students' performance in mathematics. We found that peer effects tend to be larger in bigger classes, and that increasing peer effects would significantly improve students' average test scores.
Keywords: Social networks; Peer effects; Misclassified links; Missing links; Mismeasured network; Unobserved network; Classroom performance (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm, nep-net, nep-soc and nep-ure
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