In this paper, I develop and estimate a dynamic model of strategic network formation with heterogeneous agents. The main theoretical result is the existence of a unique stationary equilibrium, which characterizes the probability of observing a specific network in the data. As a consequence, the...

In this paper, I develop and estimate a dynamic model of strategic network formation with heterogeneous agents. While existing models have multiple equilibria, I prove the existence of a unique stationary equilibrium, which characterizes the likelihood of observing a specific network in the...

The main challenges in estimating strategic network formation models are the presence of multiple equilibria, and the fact that the number of possible network configurations increases exponentially with the number of players. I propose a dynamic model of strategic network formation with...

We study the relationship between ethnicity, occupational choice, and entrepreneurship. Immigrant groups in the United States cluster in specific business sectors. For example, the concentration of Korean self-employment in dry cleaners is 34 times greater than other immigrant groups, and...

We study the relationship between ethnicity, occupational choice, and entrepreneurship. Immigrant groups in the United States cluster in specific business sectors. For example, the concentration of Korean self-employment in dry cleaners is 34 times greater than other immigrant groups, and...

This paper examines the demographic pattern of friendship links among youth and the impact of those patterns on own educational outcomes using the friendship network data in the Add Health. We develop and estimate a reduced form matching model to predict friendship link formation and identify...

In this paper we explore the relationship between ethnic fractionalization and social capital. First, we test for time differences in the impact of ethnic fractionalization on social capital using U.S. data from 1990, 1997 and 2005. Subsequently we examine the data for evidence of the conflict,...