Testing Unilateral and Bilateral Link Formation
Journal article: Empirical analysis of social networks is often based on self-reported links from survey data. How we interpret such data is crucial for drawing correct inference on network effects. We propose a method for testing whether survey responses can safely be interpreted as a link and, if so, whether links are generated by a unilateral or bilateral link formation process. We present two empirical illustrations of the test on risk-sharing links in Tanzania and on communication among Indian farmers, respectively, demonstrating the ability of the methodology to discriminate between competing data-generating processes.
Author(s)
Margherita Comola, Marcel Fafchamps
Journal
- The Economic Journal
Date of publication
- 2014
Keywords JEL
Keywords
- Farmers
- Network
- Social networks
Pages
- 954-976
URL of the HAL notice
Version
- 1
Volume
- 124