Quotation Marchenko, Maria. 2019. Dealing with Endogenous Shocks in Dynamic Friendship Network.




Different types of shocks, or the treatment of one of the players in a specific network, may influence not only the future performance of themselves but also affect their network connections. It is crucial to explore the behaviour of the whole network in response to such an event. This paper focuses on the cases of endogenously formed shock. The logic used in the peer effect literature is adopted to develop the dynamic model and accounts for the endogeneity of the shock. The model allows us to predict the endogenous part of the shock and use the remaining unexpected component to estimate the effect of the shock on the changes in the performance of network connections. The identification conditions for effect are derived, and the consistent estimation procedure is proposed.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Dealing with Endogenous Shocks in Dynamic Friendship Network
Year 2019
URL https://epub.wu.ac.at/7099/
JEL C21, C49, I21


Marchenko, Maria (Details)
Institute for Labor Economics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
1162 Statistics (Details)
5304 Labour market research (Details)
5323 Econometrics (Details)
5362 Cultural economics (Details)
5803 Educational research (Details)
5804 Educational economy (Details)
5902 Labour market research (Details)
5906 Educational economy (Details)
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