Endogenous peer effects: local aggregate or local average?

Xiaodong Liu, Eleonora Patacchini and Yves Zenou

Journal of Economic Behavior & Organization, 2014, vol. 103, issue C, 39-59

Abstract: We develop a unified model embedding different behavioral mechanisms of social interactions 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.

Keywords: Social networks; Identification of peer effects; J test; Individual-based policy; Group-based policy (search for similar items in EconPapers)
JEL-codes: A14 D85 Z13 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (114)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:103:y:2014:i:c:p:39-59

DOI: 10.1016/j.jebo.2014.03.025

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