Identification of Social Interactions
Lawrence E. Blume
Cornell University - Department of Economics; Institute for Advanced Studies (IHS); Santa Fe Institute
William A. Brock
University of Wisconsin, Madison - Department of Economics; University of Missouri at Columbia - Department of Economics
Steven N. Durlauf
University of Wisconsin - Madison - Department of Economics; National Bureau of Economic Research (NBER)
Yannis M. Ioannides
August 16, 2010
While interest in social determinants of individual behavior has led to a rich theoretical literature and many efforts to measure these influences, a mature “social econometrics” has yet to emerge. This chapter provides a critical overview of the identification of social interactions. We consider linear and discrete choice models as well as social networks structures. We also consider experimental and quasi-experimental methods. In addition to describing the state of the identification literature, we indicate areas where additional research is especially needed and suggest some directions that appear to be especially promising.
Number of Pages in PDF File: 154
Keywords: social interactions, social networks, identification
JEL Classification: C21, C23, C31, C35, C72, Z13
Date posted: August 18, 2010
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