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Social Networks with Mismeasured Links

Arthur Lewbel, Xi Qu and Xun Tang
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Xi Qu: Shanghai Jiao Tong University

No 1031, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: We consider estimation of peer effects in social network models where some network links are incorrectly measured. We show that if the number of mismeasured links does not grow too quickly with the sample size, then standard instrumental variables estimators that ignore the measurement error remain consistent, and standard asymptotic inference methods remain valid. These results hold even when measurement errors in the links are correlated with regressors, or with the model errors. Monte Carlo simulations and real data experiments confirm our results in finite samples. These findings imply that researchers can ignore small amounts of measurement errors in networks.

Keywords: Social networks; Peer e§ects; MisclassiÖed links; Missing links; Mismeasured network (search for similar items in EconPapers)
JEL-codes: C31 C51 (search for similar items in EconPapers)
Date: 2021-04-28
New Economics Papers: this item is included in nep-ecm, nep-ltv, nep-net, nep-pay and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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