STICERD Work in Progress Seminars
Estimating Channels of Diffusion in Networks
Pedro Souza (STICERD, LSE)
Friday 24 May 2013 13:00 - 14:00
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About this event
It is common sense that individual decisions or outcomes in a network are a function of connected peers. It is usually less clear what are the empirical dimensions that produce a link between individuals. I propose an econometric model to test hypotheses about parameters associated to observable characteristics of pairs of individuals -- generalically denominated 'distances', such as belonging to same gender or village -- that may produce a link through which diffusion of behaviour, information, or spillovers comes about. The model is closely related to a Spatial Econometric model with estimation based on a Generalized Method of Moments with conditions derived from the exogeneity of the distances between pairs of individuals. In addition, I suggest and discuss a possible application in Development.