EconBase
← All papers

Estimation and Inference for Latent Dual Networks Using High-Dimensional IV Screening

Arturas Juodis, George Kapetanios, Vasilis Sarafidis

arXiv 15 Jul 2026 · Econometrics

arXiv:2607.13862 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a novel methodology for estimation and inference in high-dimensional panel network models with latent dual structures. The framework allows outcomes to be affected simultaneously by positive and negative interaction channels, accommodating settings in which some interactions reinforce outcomes while others generate competition and displacement effects. The proposed method identifies and estimates the network directly from the structural model using observed data without the need to pre-specify the network. Network recovery is achieved through a sequential instrumental-variable screening procedure. We establish exact support recovery and oracle-equivalent post-selection inference. An application to U.S. corporate leverage data reveals the coexistence of reinforcing and displacement interactions in firms' financial decisions.

Citation extraction

37
references
45
in-text mentions
39
distinct cited
6
self-citations
20,148
main-text words

appendix boundary found by appendix_command · 71% 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
1Kapetanios, George and Sarafidis, Vasilis and Ventouri, Alexia (2026) Model Selection in High-Dimensional Linear Regression using Boosting with Multiple Testing self0.73732100%
2William Grieser and Charles J. Hadlock and James P. LeSage and Morad… (2022) Network Effects in Corporate Financial Policies0.58531100%
3Stylianos Asimakopoulos and George Kapetanios and Vasilis Sarafidis… (2026) Network Effects in Corporate Emissions: Evidence from a Data-Dependent Spatial Panel Model self0.51121100%
4de Paula, Áureo and Rasul, Imran and Souza, Pedro C. L (2025) Identifying Network Ties from Panel Data: Theory and an application to tax competition0.51121100%
5Binay Kumar Adhikari and Anup Agrawal (2018) Peer Influence on Payout Policies0.40511100%
6Ahrens, Achim and Bhattacharjee, Arnab (2015) Two-Step Lasso Estimation of the Spatial Weights Matrix0.40511100%
7Anselin, Luc (1988) Spatial Econometrics: Methods and Models0.40511100%
8(2009) Spatial Econometrics: Methods and Applications0.40511100%
9Baltagi, Badi H (2021) Spatial Panel Data Models0.40511100%
10Baltagi, Badi H. and Egger, Peter and Pfaffermayr, Michael (2013) A Generalized Spatial Panel Data Model with Random Effects0.40511100%

Showing the top 10 of 39 scored citations.