EconPapers    
Economics at your fingertips  
 

Measuring Social Interaction Effects when Instruments are Weak

Stephen Ross and Zhentao Shi

No 2016-033, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: Studies that can distinguish between exogenous and endogenous peer effects of social interactions are relatively rare. One recent identification strategy exploits partial overlapping groups of peers. If a student has two groups of separated peers, the peer choices are correlated through that specific student's choice, but one group's attributes are assumed to directly influence neither the other peer group's attributes nor the choices. In the context of academic performance in higher education, however, the evidence of peer effects on academic outcomes has been mixed, creating a potential for weak instruments. We utilize a period of transition when students were being reassigned to dormitories from a new campus to an old campus. Many groups of roommates were broken up at the end of freshman year, and then combined with other groups of students from the same school in the sophomore year. We find reduced-form evidence that information about a student's previous year roommates can explain the current test scores of their new roommates. However, due to weak instruments, the estimated endogenous effects appear unreasonably large. We draw on weak-IV robust tests, namely the Anderson-Rubin-type S-test (Stock and Wright, 2000) and Kleibergen's Lagrangian multiplier test (Kleibergen, 2005), to provide properly-sized tests for the endogenous effects between the test scores of current roommates and to calculate lower bounds of such effects. These tests strongly reject the null hypothesis of no endogenous effects.

Keywords: academic performance; hypothesis testing; endogenous peer effects; random assignment; weak instruments (search for similar items in EconPapers)
JEL-codes: C26 C51 I23 J00 (search for similar items in EconPapers)
Date: 2016-12
New Economics Papers: this item is included in nep-edu and nep-net
Note: MIP
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://humcap.uchicago.edu/RePEc/hka/wpaper/Ross_S ... cial-interaction.pdf First Version, December, 2016 (application/pdf)

Related works:
Journal Article: Measuring Social Interaction Effects When Instruments Are Weak (2022) Downloads
Working Paper: Measuring Social Interaction Effects when Instruments are Weak (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hka:wpaper:2016-033

Access Statistics for this paper

More papers in Working Papers from Human Capital and Economic Opportunity Working Group Contact information at EDIRC.
Bibliographic data for series maintained by Jennifer Pachon ().

 
Page updated 2024-07-19
Handle: RePEc:hka:wpaper:2016-033