Demand and Welfare Analysis in Discrete Choice Models with Social Interactions
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- Debopam Bhattacharya
- Faculty of Economics, University of Cambridge
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- Pascaline Dupas
- Stanford University
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- Shin Kanaya
- University of Essex and Kyoto University
説明
<jats:title>Abstract</jats:title> <jats:p>Many real-life settings of individual choice involve social interactions, causing targeted policies to have spillover effects. This article develops novel empirical tools for analysing demand and welfare effects of policy interventions in binary choice settings with social interactions. Examples include subsidies for health-product adoption and vouchers for attending a high-achieving school. We show that even with fully parametric specifications and unique equilibrium, choice data, that are sufficient for counterfactual demand prediction under interactions, are insufficient for welfare calculations. This is because distinct underlying mechanisms producing the same interaction coefficient can imply different welfare effects and deadweight-loss from a policy intervention. Standard index restrictions imply distribution-free bounds on welfare. We propose ways to identify and consistently estimate the structural parameters and welfare bounds allowing for unobserved group effects that are potentially correlated with observables and are possibly unbounded. We illustrate our results using experimental data on mosquito-net adoption in rural Kenya.</jats:p>
収録刊行物
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- Review of Economic Studies
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Review of Economic Studies 91 (2), 748-784, 2023-05-11
Oxford University Press (OUP)
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キーワード
- FOS: Computer and information sciences
- General Economics (econ.GN)
- Social Determinants of Health
- 38 Economics
- Econometrics (econ.EM)
- Statistics - Applications
- FOS: Economics and business
- 3801 Applied Economics
- Behavioral and Social Science
- Applications (stat.AP)
- Economics - Econometrics
- Economics - General Economics
- 3802 Econometrics
- 3803 Economic Theory
- Policy targeting, welfare analysis, social interaction, spillover, externality, convergence of Bayesian-Nash equilibria, spatial dependence, Kenya
- Generic health relevance
詳細情報 詳細情報について
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- CRID
- 1360865815500907648
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- ISSN
- 1467937X
- 15565068
- 00346527
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- 資料種別
- journal article
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- データソース種別
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- Crossref
- KAKEN
- OpenAIRE