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Identifying Social Network Effects

Economic Record

Published online on

Abstract

This paper reviews the current state of empirical econometric identification in the economics of networks. Possible identification strategies which exploit the properties and characteristics of networks are described. The main arguments are illustrated with examples from the US AddHealth data and an account of the Bloomsbury Group network. Prescriptive suggestions, based on the way in which networks actually form and operate, are made for a more considered approach to empirical econometric work which involves networks.