Fig. 7: Multilevel ALAAM specifications.
From: Local Network Interaction as a Mechanism for Wealth Inequality

An illustration of the model building process in specifying multilevel ALAAM parameters. The figure displays all network parameters included in our final model. To begin, baseline structural effects, including a household-level connectivity effect (*1), closure (*2), and a regional-level connectivity effect (*3), are first added along with other nodal attributes. Following the illustrated sequence, we then proceeded the model specifications from the ground up. We note that the cross-level interaction effect (*4) measures the association between household- (\(\left|\Delta {w}_{h}\right| > 0\)) and regional-level (\(\Delta {{Inq}}_{v}\ge .02\)) outcome change – a pre-condition for specifying the micro-macro link parameter (see Fig. 4i and Fig. 5i).