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Peer Effects in Networks: A Survey

Yann Bramoullé (), Habiba Djebbari () and Bernard Fortin ()
Additional contact information
Habiba Djebbari: Aix-Marseille University

No 12947, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We survey the recent, fast-growing literature on peer effects in networks. An important recurring theme is that the causal identification of peer effects depends on the structure of the network itself. In the absence of correlated effects, the reflection problem is generally solved by network interactions even in non-linear, heterogeneous models. By contrast, microfoundations are generally not identified. We discuss and assess the various approaches developed by economists to account for correlated effects and network endogeneity in particular. We classify these approaches in four broad categories: random peers, random shocks, structural endogeneity and panel data. We review an emerging literature relaxing the assumption that the network is perfectly known. Throughout, we provide a critical reading of the existing literature and identify important gaps and directions for future research.

Keywords: assimilation; immigrant health advantage; ethnic attrition (search for similar items in EconPapers)
JEL-codes: J15 J12 I14 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2020-01
New Economics Papers: this item is included in nep-net, nep-soc and nep-ure
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Related works:
Working Paper: Peer Effects in Networks: a Survey (2020) Downloads
Working Paper: Peer Effects in Networks: A Survey (2020) Downloads
Working Paper: Peer Effects in Networks: a Survey (2019) Downloads
Working Paper: Peer Effects in Networks: a Survey (2019) Downloads
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