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Measurement Error and Peer Effects in Networks

Yann Bramoullé, Sebastiaan Maes

arXiv 31 Jul 2026 · Econometrics

arXiv:2608.00336 · PDF · Extracted main text

Abstract

In many practical applications, only noisy proxies for the true regressors are available, which is commonly believed to induce an attenuation bias. In the linear-in-means model, however, estimated peer effects might be inflated, potentially leading to false positives. This paper shows that the asymptotic bias depends on the interplay between individual characteristics and network links and demonstrates how the network structure can facilitate identification without the need for additional external information. Based on these identification results, we present consistent GMM and 2SLS estimators that are easily implementable. Our results are illustrated by means of a Monte Carlo simulation.

Citation extraction

59
references
82
in-text mentions
59
distinct cited
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main-text words

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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
1bramoulle09 APACrefauthors Bramoullé, Y. , Djebbari, H. \ Fortin, B.… (2009) 20090.79410650%
2degiorgi19 APACrefauthors De Giorgi, G. , Frederiksen, A. \ Pistafer… (2019) 20190.64422100%
3depaularasulsouza19 APACrefauthors de Paula, A. , Rasul, I. \ Souza,… (2024) 20240.64422100%
4grilicheshausman86 APACrefauthors Griliches, Z. \ Hausman, J A. APAC… (1986) 19860.64422100%
5lavy APACrefauthors Lavy, V. \ Schlosser, A. APACrefauthors \ (2011) 20110.64422100%
6lewbel97 APACrefauthors Lewbel, A. APACrefauthors \ (1997) 19970.64422100%
7nicoletti APACrefauthors Nicoletti, C. , Salvanes, K G. \ Tominey, E… (2018) 20180.64422100%
8angrist_perils_2014 APACrefauthors Angrist, J D. APACrefauthors \ (2014) 20140.58531100%
9ericksonwhited2002 APACrefauthors Erickson, T. \ Whited, T M. APACre… (2002) 20020.5112250%
10ammermueller_peer_2009 APACrefauthors Ammermueller, A. \ Pischke, J.… (2009) 20090.51121100%

Showing the top 10 of 59 scored citations.