Social Networks and the Identification of Peer Effects
AbstractThere is a large and growing literature on peer effects in economics. In the current article, we focus on a Manski-type linear-in-means model that has proved to be popular in empirical work. We critically examine some aspects of the statistical model that may be restrictive in empirical analyses. Specifically, we focus on three aspects. First, we examine the endogeneity of the network or peer groups. Second, we investigate simultaneously alternative definitions of links and the possibility of peer effects arising through multiple networks. Third, we highlight the representation of the traditional linear-in-means model as an autoregressive model, and contrast it with an alternative moving-average model, where the correlation between unconnected individuals who are indirectly connected is limited. Using data on friendship networks from the Add Health dataset, we illustrate the empirical relevance of these ideas.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Journal of Business & Economic Statistics.
Volume (Year): 31 (2013)
Issue (Month): 3 (July)
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- Julie Beugnot & Bernard Fortin & Guy Lacroix & Marie-Claire Villeval, 2013.
"Social Networks and Peer Effects at Work,"
CIRANO Working Papers
- Beugnot, Julie & Fortin, Bernard & Lacroix, Guy & Villeval, Marie Claire, 2013. "Social Networks and Peer Effects at Work," IZA Discussion Papers 7521, Institute for the Study of Labor (IZA).
- Julie Beugnot & Bernard Fortin & Guy Lacroix & Marie Claire Villeval, 2013. "Social Networks and Peer Effects at Work," Cahiers de recherche 1320, CIRPEE.
- Julie Beugnot & Bernard Fortin & Guy Lacroix & Marie Claire Villeval, 2013. "Social Networks and Peer Effects at Works," Working Papers 1323, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Julie Beugnot & Bernard Fortin & Guy Lacroix & Marie Claire Villeval, 2013. "Social Networks and Peer Effects at Work," Working Papers halshs-00855047, HAL.
- Lindquist, Matthew & Zenou, Yves, 2014.
"Key Players in Co-Offending Networks,"
CEPR Discussion Papers
9889, C.E.P.R. Discussion Papers.
- Eleonora Patacchini & Xiaodong Liu & Edoardo Rainone, 2013. "The Allocation of Time in Sleep: A Social Network Model with Sampled Data," Center for Policy Research Working Papers 162, Center for Policy Research, Maxwell School, Syracuse University.
- William C. Horrace & Xiaodong Liu & Eleonora Patacchini, 2014. "Endogenous Network Production Functions with Selectivity," Center for Policy Research Working Papers 168, Center for Policy Research, Maxwell School, Syracuse University.
- Vincent BOUCHER & Ismael MOURIFIÃ‰, 2013. "My Friend Far Far Away: Asymptotic Properties of Pairwise Stable Networks," Working Papers tecipa-499, University of Toronto, Department of Economics.
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