A Network Formation Model Based on Subgraphs

Fuente: arXiv
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Main Authors: Chandrasekhar, Arun G., Jackson, Matthew O.
Format: Preprint
Published: 2016
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author Chandrasekhar, Arun G.
Jackson, Matthew O.
author_facet Chandrasekhar, Arun G.
Jackson, Matthew O.
contents We develop a new class of random graph models for the statistical estimation of network formation -- subgraph generated models (SUGMs). Various subgraphs -- e.g., links, triangles, cliques, stars -- are generated and their union results in a network. We show that SUGMs are identified and establish the consistency and asymptotic distribution of parameter estimators in empirically relevant cases. We show that a simple four-parameter SUGM matches basic patterns in empirical networks more closely than four standard models (with many more dimensions): (i) stochastic block models; (ii) models with node-level unobserved heterogeneity; (iii) latent space models; (iv) exponential random graphs. We illustrate the framework's value via several applications using networks from rural India. We study whether network structure helps enforce risk-sharing and whether cross-caste interactions are more likely to be private. We also develop a new central limit theorem for correlated random variables, which is required to prove our results and is of independent interest.
format Preprint
id arxiv_https___arxiv_org_abs_1611_07658
institution arXiv
publishDate 2016
record_format arxiv
spellingShingle A Network Formation Model Based on Subgraphs
Chandrasekhar, Arun G.
Jackson, Matthew O.
Physics and Society
Social and Information Networks
We develop a new class of random graph models for the statistical estimation of network formation -- subgraph generated models (SUGMs). Various subgraphs -- e.g., links, triangles, cliques, stars -- are generated and their union results in a network. We show that SUGMs are identified and establish the consistency and asymptotic distribution of parameter estimators in empirically relevant cases. We show that a simple four-parameter SUGM matches basic patterns in empirical networks more closely than four standard models (with many more dimensions): (i) stochastic block models; (ii) models with node-level unobserved heterogeneity; (iii) latent space models; (iv) exponential random graphs. We illustrate the framework's value via several applications using networks from rural India. We study whether network structure helps enforce risk-sharing and whether cross-caste interactions are more likely to be private. We also develop a new central limit theorem for correlated random variables, which is required to prove our results and is of independent interest.
title A Network Formation Model Based on Subgraphs
topic Physics and Society
Social and Information Networks
url https://arxiv.org/abs/1611.07658