Methods of Identification in Social Networks
Social and economic networks are ubiquitous, serving as contexts for job search, technology diffusion, the accumulation of human capital and even the formulation of norms and values. The systematic empirical study of network formation - the process by which agents form, maintain and dissolve links - within economics is recent, is associated with extraordinarily challenging modeling and identification issues, and is an area of exciting new developments, with many open questions. This article reviews prominent research on the empirical analysis of network formation, with an emphasis on contributions made by economists.
Forthcoming in Annual Review of Economics Doi: 10.1146/annurev-economics-080614-115611. I thank Guido Imbens for reading an initial draft and Joachim De Weerdt for generously sharing his Nyakatoke network data. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
Bryan S. Graham, 2015. "Methods of Identification in Social Networks," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 465-485, 08. citation courtesy of