Endogenous peer effects: local aggregate or local average?

Xiaodong Liu; Eleonora Patacchini; Yves Zenou

doi:10.1016/j.jebo.2014.03.025

Endogenous peer effects: local aggregate or local average?

Xiaodong Liu, Eleonora Patacchini, Yves Zenou

Research output: Contribution to journal › Article › Research › peer-review

86 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 language	English
Pages (from-to)	39-59
Number of pages	21
Journal	Journal of Economic Behavior and Organization
Volume	103
DOIs	https://doi.org/10.1016/j.jebo.2014.03.025
Publication status	Published - Jul 2014
Externally published	Yes

Keywords

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

Access to Document

10.1016/j.jebo.2014.03.025

Cite this

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title = "Endogenous peer effects: local aggregate or local average?",

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.",

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KW - social networks

KW - identification of peer effects

KW - J test

KW - individual-based policy

KW - group-based policy

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