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Econometrics of network models

Book chapter

In this article the author provides a (selective) review of the recent econometric literature on networks. The author starts with a discussion of developments in the econometrics of group interactions. The author subsequently provides a description of statistical and econometric models for network formation and approaches for the joint determination of networks and interactions mediated through those networks. Finally, the author gives a very brief discussion of measurement issues in both outcomes and networks. His focus is on identification and computational issues, but estimation aspects are also discussed.