6 Pages Posted: 3 Aug 2006
A solution to the identification failure of linear-in-means models is found through a generalization to include between-group effects. With between-group contextual and endogenous effects, it is found that the linear-in-means model can be identified under very minor rank conditions.
Keywords: Multiple social interactions, Linear-in-means model, Identification
JEL Classification: Z13, Z10
Suggested Citation: Suggested Citation
Cohen-Cole, Ethan, Multiple Groups Identification in the Linear-in-Means Model. Economics Letters, 2006. Available at SSRN: https://ssrn.com/abstract=920824