Recovering Network Structure from Aggregated Relational Data using Penalized Regression
Abstract
Social network data can be expensive to collect. Breza et al. (2017) propose aggregated relational data (ARD) as a low-cost substitute that can be used to recover the structure of a latent social network when it is generated by a specific parametric random effects model. Our main observation is that many economic network formation models produce networks that are effectively low-rank. As a consequence, network recovery from ARD is generally possible without parametric assumptions using a nuclear-norm penalized regression. We demonstrate how to implement this method and provide finite-sample bounds on the mean squared error of the resulting estimator for the distribution of network links. Computation takes seconds for samples with hundreds of observations. Easy-to-use code in R and Python can be found at https://github.com/mpleung/ARD.
Cite
@article{arxiv.2001.06052,
title = {Recovering Network Structure from Aggregated Relational Data using Penalized Regression},
author = {Hossein Alidaee and Eric Auerbach and Michael P. Leung},
journal= {arXiv preprint arXiv:2001.06052},
year = {2020}
}