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A discrete choice model with social interactions: an analysis of high school teen behavior

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Author Info

  • Kooreman, Peter
  • Soetevent, Adriaan

    (Groningen University)

Abstract

We develop an empirical discrete choice model that explicitly allows for endogenous social interactions. We analyze the issues of multiple equilibria, statistical coherency, and estimation of the model by means of simulation methods. In an empirical application, we analyze a data set containing information on the individual behavior of some 8000 high school teenagers from almost 500 different school classes. We estimate the model for five types of teen discrete choice behavior: smoking, truanting, moped ownership, cell phone ownership, and asking parents\' permission for purchases. We find strong social interaction effects for behavior closely related to school (truanting), somewhat weaker social interaction effects for behavior partly related to school (smoking, moped and cell phone ownership) and no social interaction effects for behavior far away from school (asking parents\' permission for purchases). Intra-gender interactions are much stronger than cross-gender interactions.

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File URL: http://irs.ub.rug.nl/ppn/241217318
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Bibliographic Info

Paper provided by University of Groningen, CCSO Centre for Economic Research in its series CCSO Working Papers with number 200214.

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Date of creation: 2002
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Handle: RePEc:dgr:rugccs:200214

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Postal: PO Box 800, 9700 AV Groningen
Phone: +31 50 363 7185
Fax: +31 50 363 3720
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Web page: http://ccso.eldoc.ub.rug.nl/
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Cited by:
  1. Yannis Ioannides, 2001. "Topologies of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0104, Department of Economics, Tufts University.
  2. Adriaan R. Soetevent & Peter Kooreman, 2005. "Social ties within school classes –- the roles of gender, ethnicity, and having older siblings," Microeconomics 0505004, EconWPA.
  3. Kooreman, Peter, 2003. "Time, Money, Peers, and Parents: Some Data and Theories on Teenage Behavior," IZA Discussion Papers 931, Institute for the Study of Labor (IZA).
  4. Grodner, Andrew & Kniesner, Thomas J., 2007. "Labor Supply with Social Interactions: Econometric Estimates and Their Tax Policy Implications," IZA Discussion Papers 3034, Institute for the Study of Labor (IZA).
  5. William A. Brock & Steven N. Durlauf, 2003. "Multinomial Choice with Social Interactions," NBER Technical Working Papers 0288, National Bureau of Economic Research, Inc.
  6. David Card & Laura Giuliano, 2011. "Peer Effects and Multiple Equilibria in the Risky Behavior of Friends," NBER Working Papers 17088, National Bureau of Economic Research, Inc.
  7. Alison Aughinbaugh & Maury Gittleman, 2003. "Maternal Employment and Adolescent Risky Behavior," Labor and Demography 0302002, EconWPA.
  8. Marcucci, Edoardo & Rotaris, Lucia & Paglione, Guido, 2009. "A methodology to evaluate the prospects for the introduction of a Park&Buy service," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 42, pages 26-46.

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