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Testing for Peer Effects in Heteroskedastic Fixed-Effects Panels

Cai, Leheng et al.
arXiv (All) · Papers
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methodology
We study testing for peer effects in linear panel models with individual and time fixed effects when the interaction network is unspecified. We propose a quadratic-form test based on the Gram matrix of residualized peer covariates. A key difficulty is that fixed-effects removal and nuisance estimati
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