Estimating Spillover Effects in the Presence of Isolated Nodes

Fuente: arXiv
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Main Author: Kim, Bora
Format: Preprint
Published: 2024
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author Kim, Bora
author_facet Kim, Bora
contents In estimating spillover effects under network interference, practitioners often use linear regression with either the number or fraction of treated neighbors as regressors. An often overlooked fact is that the latter is undefined for units without neighbors (``isolated nodes"). The common practice is to impute this fraction as zero for isolated nodes. This paper shows that such practice introduces bias through theoretical derivations and simulations. Causal interpretations of the commonly used spillover regression coefficients are also provided.
format Preprint
id arxiv_https___arxiv_org_abs_2412_05919
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Estimating Spillover Effects in the Presence of Isolated Nodes
Kim, Bora
Econometrics
In estimating spillover effects under network interference, practitioners often use linear regression with either the number or fraction of treated neighbors as regressors. An often overlooked fact is that the latter is undefined for units without neighbors (``isolated nodes"). The common practice is to impute this fraction as zero for isolated nodes. This paper shows that such practice introduces bias through theoretical derivations and simulations. Causal interpretations of the commonly used spillover regression coefficients are also provided.
title Estimating Spillover Effects in the Presence of Isolated Nodes
topic Econometrics
url https://arxiv.org/abs/2412.05919