Article

Abstract

• This paper introduces a structural model for the coevolution of networks and behavior. We characterize the equilibrium of the underlying game and adopt the Bayesian Double Metropolis-Hastings algorithm to estimate the model. We further extend the model to incorporate unobserved heterogeneity and show that ignoring unobserved heterogeneity can lead to biased estimates in simulation experiments. We apply the model to study R&D  investment and collaboration decisions in the chemical and pharmaceutical industry and find a positive knowledge spillover effect. Our model also provides a tractable framework for along-run key player analysis.

Creator

• König, Michael D
• Hsieh, Chih-Sheng
• Liu, Xiaodong

Date Issued

• 2020

Academic Affiliation

• Economics

Journal Title

• The Review of Economics and Statistics

Journal Issue/Number

• 2

Journal Volume

• 104

Last Modified

• 2024-07-01

Resource Type

• Article

Rights Statement

• In Copyright

DOI

•  https://doi.org/10.1162/rest_a_00958

ISSN

• 1530-9142

Language

• English [eng]

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