Treatment and Spillover Effects under Network Interference
48 Pages Posted: 2 Apr 2016 Last revised: 7 Feb 2019
Date Written: January 14, 2019
We study nonparametric and regression estimators of treatment and spillover effects when interference is mediated by a network. Inference is nonstandard due to dependence induced by treatment spillovers and network correlated effects. We derive restrictions on the network degree distribution under which the estimators are consistent and asymptotically normal and show they can be verified under a strategic model of network formation. We also construct consistent variance estimators robust to heteroskedasticity and network dependence. Our results allow for the estimation of spillover effects using data from only a single, possibly sampled, network.
Keywords: social networks, treatment effects, spillovers, SUTVA, network formation
JEL Classification: C13, C21
Suggested Citation: Suggested Citation