TY  - RPRT
        AU  - Comola, Margherita
AU  - Prina, Silvia
        TI  - Do Interventions Change the Network? A Panel Peer-Effect Model Accounting for Endogenous Network Changes
        PY  - 2014/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8641
        UR  - https://www.iza.org/publications/dp8641
        AB  - A large literature has studied how peers affect behavior by exploiting the preexisting social network structure only. What if networks rewire in response to changes in the economic environment, such as a randomized intervention? We exploit a unique panel dataset that contains detailed information on the network of informal financial transactions before and after a field experiment that randomized access to savings accounts in Nepal. First, we show that the intervention affects the structure of the network of informal financial transactions among households. Second, we estimate a panel model of peer effects in expenditure where the network may change endogenously, and we exploit the design of the randomized intervention to instrument for the observed network change. Our results suggest that disregarding the network change would underestimate both total peer effects and the overall impact of the intervention.
        KW  - networks
KW  - peer effects
KW  - financial access
        ER  -