Treatment Effect Accounting for Network Changes

Margherita Comola () and Silvia Prina
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Silvia Prina: Northeastern University [Boston]

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Abstract: Networks may rewire in response to interventions. We propose a measure of the treatment effect when an intervention affects the structure of a social network. We develop a treatment-response model that incorporates dynamic peer effects and provide its identification conditions and the associated instrumental-variable strategy. We illustrate our estimation procedure using a panel dataset containing information on a financial network before and after a field experiment that randomized access to savings accounts. Results show that neglecting the network change results in underestimation of the impact of the intervention and the role played by informal networks through which the intervention diffuses.

Keywords: Peer effects; Time-varying networks; Treatment effect (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (10)

Published in Review of Economics and Statistics, 2021, 103 (3), pp.597-604. ⟨10.1162/rest_a_00908⟩

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Working Paper: Treatment Effect Accounting for Network Changes (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02973059

DOI: 10.1162/rest_a_00908

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