A Discrete Choice Model of Social Interactions 3 3

The concept of social interactions in economics allows economists to explore applications that are as rich as the social fabric. It also introduces numerous definitional, econometric and measurement issues. The paper aims at introducing the classes of models that accommodate estimation of social interactions and at examining the key areas where significant advances have been made in the identification of social effects. It surveys linear and nonlinear models and their applications, including results regarding partial identification. The paper also examines conceptual and methodological links with the spatial econometrics and the social networks literatures and applications.