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UNDERSTANDING REGRESSION VERSUS VARIANCE TESTS FOR SOCIAL INTERACTIONS
Author(s) -
DURLAUF STEVEN N.,
TANAKA HISATOSHI
Publication year - 2008
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2007.00076.x
Subject(s) - variance (accounting) , contrast (vision) , identification (biology) , econometrics , economics , regression , computer science , mathematics , statistics , artificial intelligence , botany , accounting , biology
This article considers the relationship between the use of regressions and the use of variance contrast methods to uncover social interactions. We illustrate how these methods employ different identifying assumptions and are therefore complementary approaches. We also provide formal identification results that extend existing ones for the two methods. ( JEL C12, C21, C23, Z13)