Description/Abstract
Many data situations require the consideration of network effects among the cross-sectional units of observation. In this paper, we present a generalized panel model which accounts for two features: (i) three types of network effects on the right-hand side of the model, namely through weighted dependent variable, weighted exogenous variables, as well as weighted error components, and (ii) higher-order network effects due to ex-ante unknown network-decay functions or the presence of multiplex (or multi-layer) networks among all of those. We outline the model, the basic assumptions, and present simulation results.
Document Type
Working Paper
Date
10-2020
Keywords
Spatial and Network Interdependence, Panel Data, Higher-Order Network Effects
Language
English
Series
Working Papers Series
Disciplines
Economic Policy | Economics | Public Affairs, Public Policy and Public Administration
ISSN
1525-3066
Recommended Citation
Baltagi, Badi; Ding, Sophia; and Egger, Peter, "A Panel Data Model with Generalized Higher-Order Network Effects" (2020). Center for Policy Research. 265.
https://surface.syr.edu/cpr/265
Source
Local input
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Additional Information
Working paper no. 233