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Peer-Induced Beliefs Regarding College Participation

Vincent Boucher, Finagnon A. Dedewanou and Arnaud Dufays

Cahiers de recherche from Centre de recherche sur les risques, les enjeux économiques, et les politiques publiques

Abstract: We study peer effects on the formation of beliefs regarding college participation. We present a structural model of learning in friendship networks. We show that the model is identified and we present a Bayesian estimation procedure. We estimate the model using data on teenagers’ beliefs regarding college participation, controlling for preferences and academic achievement. We find that, on average, friends’ beliefs account for about 12% of the updating process. We also find strong heterogeneity among schools and individuals. In particular, we find substantial unobserved individual heterogeneity, which casts doubt on the efficiency of network-targeted public policies.

Keywords: Social networks; Beliefs updating; College participation; Heterogeneous peer effects (search for similar items in EconPapers)
JEL-codes: D83 I20 C31 C11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:crrecr:1817

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