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Controlling for the endogeneity of peer substance use on adolescent alcohol and tobacco use

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Author Info
Edward C. Norton (University of North Carolina at Chapel Hill, USA)
Richard C. Lindrooth (Northwestern University and Health Research and Educational Trust, USA)
Susan T. Ennett (University of North Carolina at Chapel Hill, USA)

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Abstract

This study examines whether the effects of peer substance use on adolescent alcohol and tobacco use are due to endogeneity of adolescents selecting their peer group. We analyzed data collected for a longitudinal analysis of a drug-use prevention programme for upper elementary school students. We used a two-step probit regression to control for the potentially endogenous explanatory variable peer substance use. Rigorous tests of endogeneity and the validity of the instrumental variables showed that controlling for the endogeneity of peer substance use to reduce bias is not worth the reduction in mean squared error in these data. Peer substance use has a positive and significant effect on adolescent substance use for both drinking and smoking. These results imply that peer influence is empirically more important than peer selection (endogeneity) in our sample of adolescents in grades 6-9. Living in a single-parent family was by far the strongest predictor of adolescent drinking and smoking. © 1998 John Wiley & Sons, Ltd.

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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 7 (1998)
Issue (Month): 5 ()
Pages: 439-453
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wly:hlthec:v:7:y:1998:i:5:p:439-453

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Brian Krauth, 2004. "Simulation-based estimation of peer effects," Econometrics 0408002, EconWPA. [Downloadable!]
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  2. Brian Krauth, 2004. "Peer and selection effects on youth smoking in California," HEW 0408002, EconWPA. [Downloadable!]
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  3. K. Bolin & B. Lindgren & P. Lundborg, 2008. "Informal and formal care among single-living elderly in Europe," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 393-409. [Downloadable!]
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  4. David Aristei & Luca Pieroni, 2009. "Addiction, social interactions and gender differences in cigarette consumption," Empirica, Springer, vol. 36(3), pages 245-272, August. [Downloadable!] (restricted)
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  5. Kling, Jeffrey & Liebman, Jeffrey, 2004. "Experimental Analysis of Neighborhood Effects on Youth," Working Paper Series rwp04-034, Harvard University, John F. Kennedy School of Government. [Downloadable!]
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  6. Edward C. Norton & Richard C. Lindrooth & Susan T. Ennett, 2003. "How measures of perception from survey data lead to inconsistent regression results: evidence from adolescent and peer substance use," Health Economics, John Wiley & Sons, Ltd., vol. 12(2), pages 139-148. [Downloadable!]
  7. Ricardo Sanhueza & Jaime Ruiz-Tagle, 2002. "Choosing Health Insurance in a Dual Health Care System: The Chilean Case," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 157-184, May. [Downloadable!]
  8. Paolo Buonanno & Paolo Vanin, 2007. "Bowling Alone, Drinking Together," "Marco Fanno" Working Papers 0055, Dipartimento di Scienze Economiche "Marco Fanno". [Downloadable!]
  9. Bokenblom, Mattias & Ekblad, Kristin, 2007. "Sickness Absence and Peer Effects -Evidence from a Swedish Municipality," Working Papers 2007:11, Örebro University, Swedish Business School, revised 19 Feb 2008. [Downloadable!]
  10. Daniel Lederman, 2005. "Income Wealth, and Socialization in Argentina," Cuadernos de Economía (Latin American Journal of Economics), Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(125), pages 3-30. [Downloadable!]
  11. Farrell, Lisa & Shields, Michael A., 2001. "Child Expenditure: The Role of Working Mothers, Lone Parents, Sibling Composition and Household Provision," IZA Discussion Papers 388, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Philip J. Cook & Michael J. Moore, 2001. "Environment and Persistence in Youthful Drinking Patterns," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 375-438 National Bureau of Economic Research, Inc. [Downloadable!]
  13. Andrew E. Clark & Youenn Lohéac, 2005. ""It Wasn’t Me, It Was Them!" Social Influence in Risky Behavior by Adolescents," IZA Discussion Papers 1573, Institute for the Study of Labor (IZA). [Downloadable!]
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  14. Lederman, Daniel, 2002. "Income, wealth, and socialization in Argentina : provocative responses from individuals," Policy Research Working Paper Series 2821, The World Bank. [Downloadable!]
  15. Donald S. Kenkel & Robert R. Reed III & Ping Wang, 2002. "Rational Addiction, Peer Externalities and Long Run Effects of Public Policy," NBER Working Papers 9249, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. K. Bolin & B. Lindgren & P. Lundborg, 2007. "Your Next of Kin or your Own Career? Caring and Working among the 50+ of Europe," Tinbergen Institute Discussion Papers 07-032/3, Tinbergen Institute. [Downloadable!]
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  17. Jeffrey Wilson, 2007. "Peer Effects and Cigarette Use Among College Students," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(2), pages 233-247, June. [Downloadable!] (restricted)
  18. John C. Ham, 1979. "Rationing and the Supply of Labor: An Econometric Approach," Working Papers 483, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  19. Brian Krauth, 2003. "Peer effects and selection effects in youth smoking," Computing in Economics and Finance 2003 222, Society for Computational Economics. [Downloadable!]
  20. Jeffrey E. Harris & Beatriz Lopez-Valcarcel, 2004. "Asymmetric Social Interaction in Economics: Cigarette Smoking Among Young People in the United States, 1992-1999," NBER Working Papers 10409, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  21. Norberg-Schönfeldt, Magdalena, 2007. "The Phase-Out of the Nuclear Family? Empirical Studies on the Economics and Structure of Modern Swedish Families," UmeÃ¥ Economic Studies 708, Umeå University, Department of Economics. [Downloadable!]
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