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Dynamic Social Interactions and Health Risk Behavior

Tiziano Arduini (), Alberto Bisin (), Onur Ozgur () and Eleonora Patacchini

No 26223, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study risky behavior of adolescents. Concentrating on smoking and alcohol use, we structurally estimate a dynamic social interaction model in the context of students' school networks included in the National Longitudinal Study of Adolescent Health (Add Health). The model allows for forward-looking behavior of agents, addiction effects, and social interactions in the form of preferences for conformity in the social network. We find strong evidence for forward looking dynamics and addiction effects. We also find that social interactions in the estimated dynamic model are quantitatively large. A misspecified static model would fit data substantially worse, while producing a much smaller estimate of the social interaction effect. With the estimated dynamic model, a temporary shock to students' preferences in the 10th grade has effects on their behavior in grades 10, 11, 12, with estimated social multipliers 1:53, 1:03, and 0:76, respectively. The multiplier effect of a permanent shock is much larger, up to 3:7 in grade 12. Moreover (semi-) elasticities of a permanent change in the availability of alcohol or cigarettes at home on child risky behavior implied by the dynamic equilibrium are 25%, 63%, and 79%, in grades 10, 11, 12, respectively.

JEL-codes: C18 C33 C62 C63 C73 I12 (search for similar items in EconPapers)
Date: 2019-09
New Economics Papers: this item is included in nep-hea, nep-ltv, nep-net, nep-soc and nep-ure
Note: HE PE
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