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Identifying Peer Effects in Student Academic Achievement by Spatial Autoregressive Models with Group Unobservables

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  • Xu Lin
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    Abstract

    Disentangling peer effects from other confounding effects is difficult,and separately identifying endogenous and contextual effects is impossible for the linear-in-means model. This study confronts these problems by using spatial autoregressive models with group fixed effects. The nonlinearity introduced by the variations in the peer measurements provides information to identify both endogenous and contextual effects,thus resolving the "reflection problem." The group fixed effects term captures the confounding effects of the common variables.Applying the model to data sets from the National Longitudinal Studyof Adolescent Health, I find strong evidence for both endogenous and contextual effects in student academic achievement. (c) 2010 by The University of Chicago. Allrights reserved..

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Labor Economics.

    Volume (Year): 28 (2010)
    Issue (Month): 4 (October)
    Pages: 825-860

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    Handle: RePEc:ucp:jlabec:v:28:y:2010:i:4:p:825-860

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    Web page: http://www.journals.uchicago.edu/JOLE/

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    Cited by:
    1. Patacchini, Eleonora & Zenou, Yves, 2011. "Social Networks and Parental Behavior in the Intergenerational Transmission of Religion," IZA Discussion Papers 5787, Institute for the Study of Labor (IZA).
    2. Vincent Boucher & Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2010. "Do Peers Affect Student Achievement? Evidence from Canada Using Group Size Variation," CIRANO Working Papers 2010s-08, CIRANO.
    3. Claudia Olivetti & Eleonora Patacchini & Yves Zenou, 2013. "Mothers, Friends and Gender Identity," NBER Working Papers 19610, National Bureau of Economic Research, Inc.
    4. Gioia De Melo, 2014. "Peer Effects Identified Through Social Networks: Evidence from Uruguayan Schools," Working Papers 2014-05, Banco de México.
    5. Landini, Fabio & Montinari, Natalia & Pin, Paolo & Piovesan, Marco, 2014. "Friendship Network in the Classroom: Parent Bias and Peer Effects," Working Papers 2014:19, Lund University, Department of Economics.
    6. Duncan McVicar & Julie Moschion & Chris Ryan, 2013. "Right Peer, Right Now? Endogenous Peer Effects and Achievement in Victorian Primary Schools," Melbourne Institute Working Paper Series wp2013n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    7. Oleg Poldin & Dilyara Valeeva & Maria Yudkevich, 2013. "How social ties affect peer-group effects: a case of university students," HSE Working papers WP BRP 15/SOC/2013, National Research University Higher School of Economics.
    8. König, Michael & Liu, Xiaodong & Zenou, Yves, 2014. "R&D Networks: Theory, Empirics and Policy Implications," CEPR Discussion Papers 9872, C.E.P.R. Discussion Papers.
    9. Eleonora Patacchini & Giuseppe Venanzoni, 2013. "Peer Effects in the Demand for Housing Quality," Center for Policy Research Working Papers 158, Center for Policy Research, Maxwell School, Syracuse University.
    10. Victor Lavy & Edith Sand, 2012. "The Friends Factor: How Students’ Social Networks Affect Their Academic Achievement and Well-Being?," NBER Working Papers 18430, National Bureau of Economic Research, Inc.
    11. Креховец Е. В. & Польдин О. В., 2013. "Социальные Сети Студентов: Факторы Формирования И Влияние На Учёбу," Вопросы образования // Educational Studies, НИУ ВШЭ, issue 4, pages 127-144.

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