Endogenous peer effects: local aggregate or local average?

Xiaodong Liu, Eleonora Patacchini, Yves Zenou

Research output: Contribution to journalArticleResearchpeer-review

37 Citations (Scopus)

Abstract

We develop a unified model embedding different behavioral mechanisms of social interac-tions and design a statistical model selection test to differentiate between them in empirical applications. This framework is applied to study peer effects in education (effort in studying) and sport activities for adolescents in the United States. We find that, for education, students tend to conform to the social norm of their friends while, for sport activities, both the social multiplier and the social norm effect matter.
Original languageEnglish
Pages (from-to)39-59
Number of pages21
JournalJournal of Economic Behavior and Organization
Volume103
DOIs
Publication statusPublished - Jul 2014
Externally publishedYes

Keywords

  • social networks
  • identification of peer effects
  • J test
  • individual-based policy
  • group-based policy

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