Network Data

Bryan S. Graham
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Bryan S. Graham: Institute for Fiscal Studies and University of California, Berkeley

No CWP71/19, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

Abstract: Many economic activities are embedded in networks: sets of agents and the (often) rivalrous relationships connecting them to one another. Input sourcing by ?rms, interbank lending, scienti?c research, and job search are four examples, among many, of networked economic activities. Motivated by the premise that networks’ structures are consequential, this chapter describes econometric methods for analyzing them. I emphasize (i) dyadic regression analysis incorporating unobserved agent-speci?c heterogeneity and supporting causal inference, (ii) techniques for estimating, and conducting inference on, summary network parameters (e.g., the degree distribution or transitivity index); and (iii) empirical models of strategic network formation admitting interdependencies in preferences. Current research challenges and open questions are also discussed.

Date: 2019-12-16
New Economics Papers: this item is included in nep-net and nep-ore
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