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Peer Effects and Multiple Equilibria in the Risky Behavior of Friends

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  • David Card

    (University of California Berkeley and NBER)

  • Laura Giuliano

    (University of Miami)

Abstract

We study social interactions in the initiation of sex and other risky behaviors by best friend pairs in the Add Health panel. Focusing on friends with minimal experience at the baseline interview, we estimate bivariate ordered-choice models that include both peer effects and unobserved heterogeneity. We find significant peer effects in sexual initiation: the likelihood of initiating intercourse within a year increases by almost 5 percentage points (on an 11% base rate) if one's friend also initiates intercourse. Similar effects are present for smoking, marijuana use, and truancy. We find larger effects for females and important asymmetries in nonreciprocated friendships. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 95 (2013)
Issue (Month): 4 (October)
Pages: 1130-1149

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Handle: RePEc:tpr:restat:v:95:y:2013:i:4:p:1130-1149

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Keywords: peer effeccts; sexual initiation; risky behavior;

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References

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  1. Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, Econometric Society, vol. 67(6), pages 1255-1294, November.
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Citations

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Cited by:
  1. Jeremy T. Fox & Natalia Lazzati, 2012. "Identification of Potential Games and Demand Models for Bundles," NBER Working Papers 18155, National Bureau of Economic Research, Inc.
  2. Eisenberg, Daniel & Golberstein, Ezra & Whitlock, Janis L., 2014. "Peer effects on risky behaviors: New evidence from college roommate assignments," Journal of Health Economics, Elsevier, Elsevier, vol. 33(C), pages 126-138.
  3. Jeremy Fox & Natalia Lazzati, 2013. "Identification of discrete choice models for bundles and binary games," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP04/13, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  4. Effrosyni Adamopoulou, 2012. "Peer Effects in Young Adults' Marital Decisions," Economics Working Papers, Universidad Carlos III, Departamento de Economía we1228, Universidad Carlos III, Departamento de Economía.
  5. Ciliberto, Federico & Miller, Amalia R & Nielsen, Helena S & Simonsen, Marianne, 2013. "Playing the Fertility Game at Work: An Equilibrium Model of Peer Effects," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9429, C.E.P.R. Discussion Papers.
  6. Albrecht Glitz, 2013. "Coworker networks in the labour market," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 1400, Department of Economics and Business, Universitat Pompeu Fabra.
  7. Effrosyni Adamopoulou & Ezgi Kaya, 2013. "Young adults living with their parents and the influence of peers," Economics Working Papers, Universidad Carlos III, Departamento de Economía we1310, Universidad Carlos III, Departamento de Economía.
  8. Yann Bramoull? & Rachel Kranton & Martin D'Amours, 2014. "Strategic Interaction and Networks," American Economic Review, American Economic Association, American Economic Association, vol. 104(3), pages 898-930, March.
  9. Lindquist, Matthew & Zenou, Yves, 2014. "Key Players in Co-Offending Networks," CEPR Discussion Papers, C.E.P.R. Discussion Papers 9889, C.E.P.R. Discussion Papers.
  10. Goux, Dominique & Gurgand, Marc & Maurin, Eric, 2014. "Adjusting Your Dreams? The Effect of School and Peers on Dropout Behaviour," IZA Discussion Papers 7948, Institute for the Study of Labor (IZA).
  11. Sarah Grace See, 2013. "The Riskiest of Them All: Parental Supervision and Adolescent Behaviors," CHILD Working Papers Series, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA 21, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.

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