The β-model — Maximum Likelihood, Cramér-Rao Bounds, and Hypothesis Testing

We study the maximum likelihood estimator in a setting where the dependent variable is a random graph and covariates are available on a graph-level. The model generalizes the well-known β-model for random graphs by replacing the constant model parameters with regression functions. CramérRao bounds are derived for special cases of the undirected βmodel, the directed β-model, and the covariate-based β-model. The corresponding maximum likelihood estimators are compared to the bounds by means of simulations. Moreover, examples are given on how to use the presented maximum likelihood estimators to test for directionality and significance. Last, the applicability of the model is demonstrated using temporal social network data describing communication among healthcare workers.

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