Graduate Student Statistics Seminar Speaker: Matthew Thirkettle, 3/28/17

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Tuesday Mar 28 2017

Graduate Student Statistics Seminar Speaker: Matthew Thirkettle, 3/28/17

4:00pm @ Malott 203

The Graduate Student Seminar Speaker for Tuesday, March 28, 2017 will be Matthew Thirkettle. 

Title: Consistent Estimator for Partially Observed Networks

Abstract: Network models in applied economics have been used to analyze: competition in Industrial Organization; peer effects in Education and Health (e.g., learning behavior); diffusion of agricultural information in Development; and financial contagion in Macroeconomics.  The researcher often only observes a subnetwork of a network.  Even if the observed subnetwork is constructed from a random sample of nodes (people or firms), standard network estimators are often inconsistent due to non-classical measurement error.  Chandrasekhar and Lewis (2011) (CL) propose that the researcher reconstructs the missing portion of the network using a network-formation model, and then use the reconstructed network to estimate the network parameter, B.  CL's network-formation model is not credible in most economic settings, as it does not allow for network externalities.  I extend CL's method to allow for positive network externalities.  Network-formation models that allow for externalities are generally partially identified. I estimate an outer identification region for the network-formation parameter using a necessary equilibrium condition on subnetworks, and propose a method to attain bounds on the distribution of the missing portion of a network using the network-formation model.  These bounds can be used to estimate an outer identification region for the network parameter B.