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Identifying the Effect of Persuasion

Sung Jae Jun and Sokbae (Simon) Lee ()

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Abstract: We set up an econometric model of persuasion and study identification of key parameters under various scenarios of data availability. We find that a commonly used measure of persuasion does not estimate the persuasion rate of any population in general. We provide formal identification results, recommend several new parameters to estimate, and discuss their interpretation. Further, we propose efficient estimators of the two central parameters. We revisit two strands of the empirical literature on persuasion to show that the persuasive effect is highly heterogeneous and studies based on binary instruments provide limited information about the average persuasion rate in a heterogeneous population.

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Date: 2018-12
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Working Paper: Identifying the effect of persuasion (2018) Downloads
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