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A Nonparametric Test for Cross-Unit Spillovers

Margherita Comola, Camila Comunello, Abhimanyu Gupta

arXiv 31 Jul 2026 · Econometrics

arXiv:2608.00136 · PDF · Extracted main text

Abstract

Cross-unit dependence is pervasive in empirical applications and complicates econometric inference, especially when spillovers operate in nonlinear ways. We propose a novel nonparametric test for cross-unit spillovers that may operate through peers' attributes, peers' outcomes, or both. The test is straightforward to implement, as it requires only estimation under the null hypothesis of no cross-unit spillovers, and is shown to have a convenient asymptotic standard normal distribution. It is also versatile, accommodating data generated by a wide range of interaction structures. We present four empirical illustrations showing that the proposed test can yield substantively different conclusions about the presence of cross-unit spillovers than existing approaches.

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58
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118
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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
1Guryan, Jonathan and Kroft, Kory and Notowidigdo, Matthew J (2009) Peer Effects in the Workplace: Evidence from Random Groupings in Professional Golf Tournaments0.79412350%
2Corno, Lucia and La Ferrara, Eliana and Burns, Justine (2022) Interaction, Stereotypes, and Performance: Evidence from South Africa0.7948350%
3Wu, Jia and Zhang, Junsen and Wang, Chunchao (2023) Student Performance, Peer Effects, and Friend Networks: Evidence from a Randomized Peer Intervention0.7948350%
4Bosquet, Clément and Combes, Pierre-Philippe and Henry, Emeric and M… (2022) Peer Effects in Academic Research: Senders and Receivers0.73710340%
5A. S. Booij and E. Leuven and H. Oosterbeek (2017) Ability Peer Effects in University: Evidence from a Randomized Experiment0.73710260%
6Cai, Jing and Szeidl, Adam (2017) Interfirm Relationships and Business Performance0.71113254%
7Bramoullé, Yann and Djebbari, Habiba and Fortin, Bernard (2009) Identification of peer effects through social networks0.64422100%
8Arduini, Tiziano and Patacchini, Eleonora and Rainone, Edoardo (2020) Treatment Effects With Heterogeneous Externalities0.5112250%
9Avvisati, Francesco and Gurgand, Marc and Guyon, Nina and Maurin, Eric (2013) Getting Parents Involved: A Field Experiment in Deprived Schools0.40511100%
10Baird, Sarah and Bohren, J. Aislinn and McIntosh, Craig and Özler, B… (2018) Optimal Design of Experiments in the Presence of Interference0.40511100%

Showing the top 10 of 58 scored citations.