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Financial networks help firms manage risk but also enable financial shocks to spread. Despite their importance, existing models of financial networks have several limitations. Prior works often consider a static network with a simple…

Optimization and Control · Mathematics 2024-02-06 Akhil Jalan , Deepayan Chakrabarti , Purnamrita Sarkar

We consider a causal inference model in which individuals interact in a social network and they may not comply with the assigned treatments. In particular, we suppose that the form of network interference is unknown to researchers. To…

Methodology · Statistics 2023-10-24 Tadao Hoshino , Takahide Yanagi

We develop a novel methodology for the proxy variable identification of firm productivity in the presence of productivity-modifying learning and spillovers which facilitates a unified "internally consistent" analysis of the spillover…

General Economics · Economics 2023-03-01 Emir Malikov , Shunan Zhao

No man is an island, as individuals interact and influence one another daily in our society. When social influence takes place in experiments on a population of interconnected individuals, the treatment on a unit may affect the outcomes of…

Methodology · Statistics 2017-08-30 Edward K. Kao

We describe a simple spatial model of urban growth for systems of cities at the macroscopic scale, which combines direct interaction between cities and an indirect effect of physical network flows as population growth drivers. The model is…

Physics and Society · Physics 2018-04-26 Juste Raimbault

This paper provides a method to construct simultaneous confidence bands for quantile functions and quantile effects in nonlinear network and panel models with unobserved two-way effects, strictly exogenous covariates, and possibly discrete…

Econometrics · Economics 2020-06-09 Victor Chernozhukov , Iván Fernández-Val , Martin Weidner

Spatially embedded networks are shaped by a combination of purely topological (space-independent) and space-dependent formation rules. While it is quite easy to artificially generate networks where the relative importance of these two…

Physics and Society · Physics 2013-09-10 Franco Ruzzenenti , Francesco Picciolo , Riccardo Basosi , Diego Garlaschelli

This paper shows how to use a randomized saturation experimental design to identify and estimate causal effects in the presence of spillovers--one person's treatment may affect another's outcome--and one-sided non-compliance--subjects can…

This paper develops a difference-in-differences framework for staggered policy adoption when units can be affected by other units' adoption. For each treated cohort and event time, the framework separates the effect of own adoption, the…

Econometrics · Economics 2026-05-15 Hayato Tagawa

Interference is ubiquitous when conducting causal experiments over networks. Except for certain network structures, causal inference on the network in the presence of interference is difficult due to the entanglement between the treatment…

Methodology · Statistics 2023-12-08 Chencheng Cai , Xu Zhang , Edoardo M. Airoldi

Network autocorrelation models have been widely used for decades to model the joint distribution of the attributes of a network's actors. This class of models can estimate both the effect of individual characteristics as well as the network…

Methodology · Statistics 2020-05-20 Daniel K. Sewell

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…

Econometrics · Economics 2024-12-10 Bora Kim

In settings where interference is present, direct effects are commonly defined as the average effect of a unit's treatment on their own outcome while fixing the treatment status or probability among interfering units, and spillover effects…

Methodology · Statistics 2025-06-10 Fei Fang , Edoardo M Airoldi , Laura Forastiere

Estimating treatment effects in networks is challenging, as each potential outcome depends on the treatments of all other nodes in the network. To overcome this difficulty, existing methods typically impose an exposure mapping that…

Machine Learning · Computer Science 2026-02-04 Maresa Schröder , Miruna Oprescu , Stefan Feuerriegel , Nathan Kallus

How social networks influence human behavior has been an interesting topic in applied research. Existing methods often utilized scale-level behavioral data to estimate the influence of a social network on human behavior. This study proposes…

Social and Information Networks · Computer Science 2025-01-08 Jina Park , Ick Hoon Jin , Minjeong Jeon

Modified treatment policies are a widely applicable class of interventions useful for studying the causal effects of continuous exposures. Approaches to evaluating their causal effects assume no interference, meaning that such effects…

Methodology · Statistics 2025-12-12 Salvador V. Balkus , Scott W. Delaney , Nima S. Hejazi

Aggregate and systemic risk in complex systems are emergent phenomena depending on two properties: the idiosyncratic risks of the elements and the topology of the network of interactions among them. While a significant attention has been…

Social and Information Networks · Computer Science 2018-09-25 Elisa Letizia , Fabrizio Lillo

Indirect effects are powerful influences in ecosystems that may maintain species diversity and alter apparent relationships between species in surprising ways. Here, we applied Network Environ Analysis to 50 empirically-based trophic…

Populations and Evolution · Quantitative Biology 2011-04-04 Andria K. Salas , Stuart R. Borrett

We study the impact of contagion in a network of firms facing credit risk. We describe an intensity based model where the homogeneity assumption is broken by introducing a random environment that makes it possible to take into account the…

Risk Management · Quantitative Finance 2008-12-02 Paolo Dai Pra , Marco Tolotti

We present a methodology to extract the backbone of complex networks based on the weight and direction of links, as well as on nontopological properties of nodes. We show how the methodology can be applied in general to networks in which…

General Finance · Quantitative Finance 2010-06-23 J. B. Glattfelder , S. Battiston