netdat.RdThis function creates the design matrix for a latent network structure using a balanced panel
netdat(datf, Y, X, Wi, W = NULL, panvar, tvar, factors, scaling = TRUE, unicons = TRUE)
| datf | the entire data frame of balanced panel with NT rows of unit-time observations |
|---|---|
| Y | dependent variable in the data frame datf |
| X | the covariate(s) generating spillovers |
| Wi | other unit-varying (can be time-invariant) control variables |
| W | global variables. these are only time varying but are common to all units. eg. GDP for individual/state-level data. Note that W has to be a vector of length T so cannot be in the data frame datf |
| panvar | the panel variable eg. unique person/firm identifiers |
| tvar | time variable, eg. years |
| factors | a vector of characters of factors in the data |
| scaling | a logical indicating whether non-discrete covariates should be scaled by their standard deviations |
| unicons | a logical indicating whether to include unit-specific constant term |
Y vector of dependent variables
X a block matrix of spillover matrix (\(TN\) x \(N^2\) )
Wm a matrix corresponding to covariate Wi
Wf a matrix of dummies corresponding to factors