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Econometric Models of Network Formation

De Paula, Á; (2020) Econometric Models of Network Formation. Annual Review of Economics , 12 pp. 775-799. 10.1146/annurev-economics-093019-113859.

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This article provides a selective review of the recent literature on econometric models of network formation. I start with a brief exposition on basic concepts and tools for the statistical description of networks; then I offer a review of dyadic models, focusing on statistical models on pairs of nodes, and I describe several developments of interest to the econometrics literature. I also present a discussion of nondyadic models in which link formation might be influenced by the presence or absence of additional links, which themselves are subject to similar influences. This argument is related to the statistical literature on conditionally specified models and the econometrics of game theoretical models. I close with a (nonexhaustive) discussion of potential areas for further development.

Type: Article
Title: Econometric Models of Network Formation
DOI: 10.1146/annurev-economics-093019-113859
Publisher version: https://doi.org/10.1146/annurev-economics-093019-1...
Language: English
Additional information: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
Keywords: network econometrics, dyadic models, strategic network formation models, JEL C31, JEL C51, JEL D85
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10125298
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