A Structural Model for the Coevolution of Networks and Behavior Unavailable

This paper has grown out of ideas in a manuscript circulated under the title “Network Formation with Local Complements and Global Substitutes: The Case of R&D Networks,” which is now split into two papers. In this paper, we propose a general econometric model for the coevolution of networks and behavior incorporating both network formation externalities and unobserved heterogeneity. In the second paper, we focus on the equilibrium characterization, estimation, and policy implications of dynamic R&D network models. We thank the editor, Bryan Graham, and three anonymous referees for valuable comments and suggestions. We also thank Vincent Boucher, Lung-fei Lee, Angelo Mele, Olivier Parent, Eleonora Patacchini, and the seminar participants at the Barcelona GSE summer forum (Networks: Information, Contracts, and Communities), the 2019 Asia Meeting of the Econometric Society, the 2019 China Meeting of the Econometric Society, the 29th Annual Meeting of the Midwest Econometrics Group, and the XIII World Conference of the Spatial Econometrics Association for helpful discussions. We further thank Christian Helmers for data sharing and Sebastian Ottinger for excellent research assistance.

A supplemental appendix is available online at https://doi.org/10.1162/rest_a_00958.