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Regression with Observational Multilayered Network Data

Juan Estrada, Kim Huynh, David Jacho-Chavez, Leonardo Sanchez-Aragon

arXiv 2 Aug 2026 · Econometrics

arXiv:2608.01421 · PDF · Extracted main text

Abstract

A novel method to estimate social effect coefficients in the popular so-called linear-in-means regression model in the Social Sciences is presented here that utilizes non-experimental multidimensional network data. The procedure can accommodate social interactions that correlate with the error in the model by making use of a different set of network links among the same observations that are exogenous in the traditional sense. In particular, the full observability of a two-layered multiplex network data structure is assumed here to propose a new Generalized 3-Stage Least Squares (G3SLS) estimator that is consistent, asymptotically normally distributed, and also easy to implement using widely-used existing statistical software because of its closed-form definition. The underlying assumptions are general enough to accommodate common problems with observational data such as measurement error, simultaneity, and unobserved heterogeneity. Monte Carlo exercises confirm the good small sample performance of the proposed G3SLS estimator in these scenarios. An empirical application finds positive and significant peer effects in citations among research articles published in top general-interest journals in economics.

Citation extraction

41
references
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in-text mentions
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distinct cited
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self-citations
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main-text words

appendix boundary found by appendix_command · 48% 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
1Chan, TszKin Julian, Juan Estrada, Kim Huynh, David Jacho-Chavez, Ch… (2024) Estimating Social Effects with Randomized and Observational Network Data self1.00084100%
2Estrada, Pablo, Juan Estrada, Kim Huynh, David Jacho-Chavez, and Leo… (2025) netivreg: Estimation of Peer Effects in Endogenous Social Networks self0.84333100%
3Boccaletti, S., G. Bianconi, R. Criado, C. I. del Genio, J. Gómez-Ga… (2014) The Structure and Dynamics of Multilayer Networks0.81142100%
4Estrada, Juan (2022) Causal Inference in Multilayered Networks self0.7373367%
5Johnsson, Ida and Hyungsik Roger Moon (2021) Estimation of Peer Effects in Endogenous Social Networks: Control Function Approach0.73732100%
6Carrell, Scott E, Bruce I Sacerdote, and James E West (2013) From Natural Variation to Optimal Policy? The Importance of Endogenous Peer Group Formation0.73732100%
7Erdös, P and A Rényi (1959) On Random Graphs0.64441100%
8Atkisson, Curtis, Piotr J. Górski, Matthew O. Jackson, Janusz A. Hoy… (2020) Why Understanding Multiplex Social Network Structuring Processes Will Help Us Better Understand the Evolution of Human Behavior0.64422100%
9Kelejian, Harry H. and Ingmar R. Prucha (1998) A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Distur…0.64422100%
10Kelejian, Harry H. and Ingmar R. Prucha (1999) A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model0.64422100%

Showing the top 10 of 43 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
1Estimating Peer Influence in Multilayer Networks0.40511