?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F4058%2F&rft.title=Identification+of+Social+Effects+with+Endogenous+Networks+and+Covariates%3A+Theory+and+Simulations&rft.creator=Pereda-Fern%C3%A1ndez%2C+Santiago&rft.creator=Zacchia%2C+Paolo&rft.subject=HB+Economic+Theory&rft.description=The+estimation+of+spillover+and+peer+effects+presents+challenges+that+are+still+unsolved.+In+fact%2C+even+if+separate+algebraic+identification+of+the+endogenous+and+exogenous+effects+is+possible%2C+these+might+be+contaminated+by+the+simultaneous+dependence+of+outcomes%2C+%0D%0Acovariates+and+the+network+structure+upon+spatially+correlated+unobservables.+In+this+paper+we+characterize+the+identification+conditions+for+consistently+estimating+all+the+parameters+of+a+spatially+autoregressive+or+linear-in-means+model+in+presence+of+linear+forms+of+endogeneity.+We+show+that+identification+is+possible+if+the+spatial+correlation+of+individual+covariates+and+that+of+unobservables+do+not+overlap%2C+and+we+relate+this%0D%0Aidea+to+a+schooling+context+in+which+the+factors+that+determine+friendships+and+socioeconomic+characteristics+are+different.+We+propose+a+GMM+estimator+to+estimate+the%0D%0Arelevant+parameters+and+we+evaluate+its+performance+through+Monte+Carlo+simulations.&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=http%3A%2F%2Feprints.imtlucca.it%2F4058%2F1%2FNetwork%2520GMM%2520Paper%2520March%25202018.pdf&rft.identifier=++Pereda-Fern%C3%A1ndez%2C+Santiago+and+Zacchia%2C+Paolo++Identification+of+Social+Effects+with+Endogenous+Networks+and+Covariates%3A+Theory+and+Simulations.++Working+Paper+++++++(Submitted)+++