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Estimating Spillover Effects in the Presence of Isolated Nodes

Bora Kim

arXiv 8 Dec 2024 · Econometrics

arXiv:2412.05919 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In estimating spillover effects under network interference, practitioners often use linear regression with either the number or fraction of treated neighbors as regressors. An often overlooked fact is that the latter is undefined for units without neighbors (“isolated nodes"). The common practice is to impute this fraction as zero for isolated nodes. This paper shows that such practice introduces bias through theoretical derivations and simulations. Causal interpretations of the commonly used spillover regression coefficients are also provided.

Citation extraction

25
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appendix boundary found by appendix_titled_section at “Appendix” · 69% 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
1Leung, M. P (2020) Treatment and Spillover Effects Under Network Interference0.7373367%
2Aronow, P. M., & Samii, C (2017) Estimating average causal effects under general interference0.64422100%
3Angrist, J.D., & Pischke, J.S (2009) Mostly harmless econometrics0.5112250%
4Bandiera, O., Barankay, I., & Rasul, I (2010) Social incentives in the workplace0.51121100%
5Barabási, A.-L (2016) Network Science0.40511100%
6Borusyak, K., & Hull, P (2023) Nonrandom Exposure to Exogenous Shocks0.40511100%
7Bramoullé, Y., Djebbari, H., & Fortin, B (2020) Peer Effects in Networks: A Survey0.40511100%
8Bryan, G., Chowdhury, S., and Mobarak, A. M (2014) Underinvestment in a Profitable Technology: The Case of Seasonal Migration in Bangladesh0.40511100%
9Cai, J., De Janvry, A., and Sadoulet, E (2015) Social Networks and the Decision to Insure0.40511100%
10Carter, M., Laajaj, R., & Yang, D (2021) Subsidies and the African Green Revolution: Direct Effects and Social Network Spillovers of Randomized Input Subsidies in Mozamb…0.40511100%

Showing the top 10 of 24 scored citations.