Identifying social interactions: a review

School have provided financial support. We thank J. Michael Oakes for immensely helpful comments on a previous draft and Buz Brock for many comments on this work. Ethan Cohen-Cole, Giacomo Rondina and Histaoshi Tanaka have provided splendid research assistance. …political economy…does credit to thought because it finds the laws underlying a mass of contingent occurrences. It is an interesting spectacle to observe here how all the interconnections have repercussions on others, how the particular spheres fall into groups, influence others and are helped or hindered by these. This interaction, which seems at first sight incredible since everything seems to depend on the arbitrary will of the individual…bears a resemblance to the planetary system, which presents only irregular movements to the eye, yet whose laws can nevertheless be recognized.

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