Peer Effects in Networks

old_uid17974
titlePeer Effects in Networks
start_date2019/11/08
schedule11h-12h30
onlineno
location_infosalle S17
summaryWe 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 without imposing more structure to the model. 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. Co-authors : Yann Bramoullé, Habiba Djebbari
responsiblesLe Lec, Laslier