Treatment and Spillover Effects under Network Interference

48 Pages Posted: 2 Apr 2016 Last revised: 7 Feb 2019

See all articles by Michael P. Leung

Michael P. Leung

University of Southern California - Department of Economics

Date Written: January 14, 2019

Abstract

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

Leung, Michael, Treatment and Spillover Effects under Network Interference (January 14, 2019). Available at SSRN: https://ssrn.com/abstract=2757313 or http://dx.doi.org/10.2139/ssrn.2757313

Michael Leung (Contact Author)

University of Southern California - Department of Economics ( email )

3620 South Vermont Ave.
Kaprielian (KAP) Hall, 310A
Los Angeles, CA 90089
United States

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