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Endogenous Shocks in Social Networks: Exam Failures and Friends' Future Performance

Maria Marchenko ()

No 292, Department of Economics Working Paper Series from WU Vienna University of Economics and Business

Abstract: Exam failures of the students in a specific network may influence not only the future performance of the student but also all students from their friendship networks, affecting the overall cohort's performance. Therefore, it is crucial to understand how the whole network responses to failure. The difficulty of such analysis is incorporated in the probability of the failures being highly endogenous. In this paper, I am applying the novel identification and estimation approach to deal with such endogeneity. I am exploring the dynamic data on the students' networks in HSE, Nizhniy Novgorod. The results suggest that, on average, the exam failure of the friend have a negative effect on future performance.

Keywords: social networks; peer effects; exam failures; shock spillover (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-net and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wus005:7100

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