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Network Cluster-Robust Inference

Michael P. Leung

arXiv 2 Mar 2021 · Econometrics · publishedEconometrica (2023) · 14 citations (OpenAlex)

arXiv:2103.01470 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Since network data commonly consists of observations from a single large network, researchers often partition the network into clusters in order to apply cluster-robust inference methods. Existing such methods require clusters to be asymptotically independent. Under mild conditions, we prove that, for this requirement to hold for network-dependent data, it is necessary and sufficient that clusters have low conductance, the ratio of edge boundary size to volume. This yields a simple measure of cluster quality. We find in simulations that when clusters have low conductance, cluster-robust methods control size better than HAC estimators. However, for important classes of networks lacking low-conductance clusters, the former can exhibit substantial size distortion. To determine the number of low-conductance clusters and construct them, we draw on results in spectral graph theory that connect conductance to the spectrum of the graph Laplacian. Based on these results, we propose to use the spectrum to determine the number of low-conductance clusters and spectral clustering to construct them.

Citation extraction

38
references
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in-text mentions
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distinct cited
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appendix boundary found by appendix_command · 89% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Bester, Conley and Hansen (2011) Inference with Dependent Data Using Cluster Covariance Estimators1.000104100%
2Zacchia (2020) Knowledge Spillovers Through Networks of Scientists1.00064100%
3Canay, Romano and Shaikh (2017) Randomization Tests Under an Approximate Symmetry Assumption1.00063100%
4Ibragimov and Müller (2010) $t$-Statistic Based Correlation and Heterogeneity Robust Inference1.00063100%
5Leung (2022) Causal Inference Under Approximate Neighborhood Interference self0.97112492%
6Cameron and Miller (2015) A Practitioner's Guide to Cluster-Robust Inference0.92843100%
7Canay, Santos and Shaikh (2021) The Wild Bootstrap with a “Small0.92843100%
8Kojevnikov, Marmer and Song (2021) Limit Theorems for Network Dependent Random Variables0.9209478%
9Aral and Nicolaides (2017) Exercise Contagion in a Global Social Network0.84333100%
10von Luxburg (2007) A Tutorial on Spectral Clustering0.81142100%

Showing the top 10 of 41 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Gradient Wild Bootstrap for Instrumental Variable Quantile Regressions with Weak and Few Clusters1.00093
2Wild Bootstrap Inference for Instrumental Variables Regressions with Weak and Few Clusters0.87452
3Policy design in experiments with unknown interference0.84333
4Optimal Estimation Methodologies for Panel Data Regression Models0.693141
5Policy Targeting under Network Interference0.51122
6Causal Inference on Networks under Continuous Treatment Interference0.40511
7Causal Models for Longitudinal and Panel Data: A Survey0.40511
8Data-Driven Switchback Experiments: Theoretical Tradeoffs and Empirical Bayes Designs0.40511
9Inference in Linear Dyadic Data Models with Network Spillovers0.00011