Closure, connectivity and degree distributions: Exponential random graph (p*) models for directed social networks

The new higher order specifications for exponential random graph models introduced by Snijders et al. [Snijders,T.A.B., Rattison, RE., Robins G.L., Handcock. M., 2006. New specifications for exponential random graph models. Sociological Methodology 36,99-153] exhibit substantial improvements in model fit compared with the commonly used Markov random graph models. Snijders et al., however, concentrated on non-directed graphs, with only limited extensions to directed graphs. In particular, they presented a transitive closure parameter based on path shortening. In this paper, we explain the theoretical and empirical advantages in generalizing to additional closure effects. We propose three new triadic-based parameters to represent different versions of triadic closure: cyclic effects; transitivity based on shared choices of partners; and transitivity based on shared popularity. We interpret the last two effects as forms of structural homophily, where ties emerge because nodes share a form of localized structural equivalence. We show that, for some datasets, the path shortening parameter is insufficient for practical modeling, whereas the structural homophily parameters can produce useful models with distinctive interpretations. We also introduce corresponding lower order effects for multiple two-path connectivity. We show by example that the in- and out-degree distributions may be better modeled when star-based parameters are supplemented with parameters for the number of isolated nodes, sources (nodes with zero in-degrees) and sinks (nodes with zero out-degrees). Inclusion of a Markov mixed star parameter may also help model the correlation between in- and out-degrees. We select some 50 graph features to be investigated in goodness of fit diagnostics, covering a variety of important network properties including density, reciprocity, geodesic distributions, degree distributions, and various forms of closure. As empirical illustrations, we develop models for two sets of organizational network data: a trust network within a training group, and a work difficulty network within a government instrumentality. (C) 2008 Elsevier B.V. All rights reserved.