A0700
Title: Estimating homophily and transitivity in dynamic networks: Evidence from Chinese registered company data
Authors: Liyu Dou - Singapore Management University (Singapore)
Ming Li - The Chinese University of Hong Kong - Shenzhen (China)
Wenjie Wang - Nanyang Technological University (Singapore)
Xinghao Yu - The Chinese University of Hong Kong, Shenzhen (China) [presenting]
Abstract: Homophily and transitivity are two crucial characteristics influencing link formation and clustering in real-world networks. The former reflects the tendency of agents to connect with similar agents, while the latter property reflects the tendency of agents to form triadic relationships with higher utility. Estimation and inference on dynamic networks with these attributes have been widely considered in the literature while rarely used in empirical studies. A conditional stable neighborhood logit model is applied to an extensive and dynamic entrepreneurship network to examine the relevance of these identification conditions and theoretical results in the real-world network data, with the aim of investigating the formation of Chinese registered companies. The preliminary work reveals that both individuals' entrepreneurial spirit and the spillover utility from entrepreneurial success play a crucial role in forming entrepreneurial networks in China and that the latter has a more significant impact. More insights are selected to be discussed further.
