Peer Effects in Networks: A Survey

Yann Bramoullé, Habiba Djebbari and Bernard Fortin ()

No 12947, IZA Discussion Papers from Institute of Labor Economics (IZA)

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, microfoundations 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: ethnic attrition; immigrant health advantage; assimilation (search for similar items in EconPapers)
JEL-codes: I14 J12 J15 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2020-01
New Economics Papers: this item is included in nep-net, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (63)

Published - published in: Annual Review of Economics, 2020, 12, 603 - 629

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https://docs.iza.org/dp12947.pdf (application/pdf)

Related works:
Journal Article: Peer Effects in Networks: A Survey (2020)
Working Paper: Peer Effects in Networks: a Survey (2020)
Working Paper: Peer Effects in Networks: A Survey (2020)
Working Paper: Peer Effects in Networks: A Survey (2020)
Working Paper: Peer Effects in Networks: a Survey (2019)
Working Paper: Peer Effects in Networks: a Survey (2019)
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