An Equilibrium-Correction Model for Dynamic Network Data

Abstract

We propose a two-stage MRQAP to analyze dynamic network data, within the framework of an equilibrium-correction (EC) model. Extensive simulation results indicate practical relevance of our method and its improvement over standard OLS. An empirical illustration additionally shows that the EC model yields interpretable parameters, in contrast to an unrestricted dynamic model.cognitive social structures;consistent accuracy;network centrality;structural autocorrelation;two-stage equilibrium model