Understanding Regression Versus Variance Tests for Social Interactions

4 Pages Posted: 19 Mar 2008

See all articles by Steven N. Durlauf

Steven N. Durlauf

University of Chicago; National Bureau of Economic Research (NBER)

Hisatoshi Tanaka

affiliation not provided to SSRN

Date Written: 2008-03-11

Abstract

This article considers the relationship between the use of regressions and the use of variance contrast methods to uncover social interactions. We illustrate how these methods employ different identifying assumptions and are therefore complementary approaches. We also provide formal identification results that extend existing ones for the two methods.

JEL Classification: C12, C21, C23, Z13

Suggested Citation

Durlauf, Steven N. and TANAKA, HISATOSHI, Understanding Regression Versus Variance Tests for Social Interactions (2008-03-11). Economic Inquiry, Vol. 46, Issue 1, pp. 25-28, January 2008. Available at SSRN: https://ssrn.com/abstract=1105981 or http://dx.doi.org/10.1111/j.1465-7295.2007.00076.x

Steven N. Durlauf (Contact Author)

University of Chicago ( email )

1155 East 60th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

HISATOSHI TANAKA

affiliation not provided to SSRN

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