Dynamic Properties of Local Interaction Models
Dynamic Properties of Local Interaction Models
The chapter analyses the underlying principles of social interactions. The chapter develops a model in which individual employment probabilities are determined by the employment status of an individual's neighbors. Such a dependence arises naturally when information about jobs diffuses locally. It demonstrates that this framework can capture important aspects of observed spatial interdependences across Chicago neighborhoods.
Keywords: social interactions, employment probabilities, employment status, spatial interdependences, Chicago
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