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Endogenous peer effects: local aggregate or local average?

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  • Liu, Xiaodong
  • Patacchini, Eleonora
  • Zenou, Yves
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    Abstract

    We develop a unified model embedding different behavioral mechanisms of social interactions and design a statistical model selection test to differentiate between them in empirical applications. This framework is applied to study peer effects in education (effort in studying) and sport activities for adolescents in the United States. We find that, for education, students tend to conform to the social norm of their friends while, for sport activities, both the social multiplier and the social norm effect matter.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 103 (2014)
    Issue (Month): C ()
    Pages: 39-59

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    Handle: RePEc:eee:jeborg:v:103:y:2014:i:c:p:39-59

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    Web page: http://www.elsevier.com/locate/jebo

    Related research

    Keywords: Social networks; Identification of peer effects; J test; Individual-based policy; Group-based policy;

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    References

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