Xiao Yang's Personal Website

Welcome! I am a Phd candidate in the economic department at the University of Chicago. My research interest lies in economics and econometric methods of strategic network formation, as well as applications of strategic network models to areas such as production networks, social interactions, and blockchains. In my dissertation, I develop a tractable Markov model of strategic network formation with fully rational forward looking heterogeneous agents make unrestricted link formation decisions under incomplete information. It is the first model to feature both aggregate and individual network Markov state dependence in dynamic network formation model. This feature of aggregate state dependence allows me to investigate the role of network externality through a global interaction channel. I propose a two step likelihood-based estimation method and the model can be estimated using either aggregate or individual level data on links. I apply the model to study US production network using sector level input-output data. I find that network externality is quantitatively important for endogenous network formation. Furthermore, negative network externality provides alternative explanation for network persistence. In an extension, I show how endogenous entry and exit of nodes be can jointly formulated with endogenous network formation.

You can read more about my latest research here.

My latest CV can be found here.

I will be on the 2020-2021 ASSA for private sector interviews.