A discrete choice model with social interactions; with an application to high school teen behavior
AbstractWe develop an empirical discrete choice interaction model with a finite number of agents. We characterize its equilibrium properties - in particular the correspondence between the interaction strength, the number of agents, and the set of equilibria - and propose to estimate the model by means of simulation methods. In an empirical application, we analyze the individual behavior of some 8000 high school teenagers from almost 500 different school classes. We find endogenous social interaction effects to be strong for behavior closely related to school (truancy), somewhat weaker for behavior partly related to school (smoking, cell phone ownership, and moped ownership) and absent for behavior far away from school (asking parents' permission for purchases). Intra-gender interactions are generally much stronger than cross-gender interactions
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Bibliographic InfoPaper provided by University of Groningen, CCSO Centre for Economic Research in its series CCSO Working Papers with number 200401.
Date of creation: 2004
Date of revision:
Other versions of this item:
- Peter Kooreman & Adriaan R. Soetevent, 2007. "A discrete-choice model with social interactions: with an application to high school teen behavior," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(3), pages 599-624.
- Kooreman, P. & Soetevent, A., 2007. "A discrete choice model with social interactions; with an application to high school teen behavior," Open Access publications from Tilburg University urn:nbn:nl:ui:12-284131, Tilburg University.
- NEP-ALL-2004-04-25 (All new papers)
- NEP-DCM-2004-04-25 (Discrete Choice Models)
- NEP-ECM-2004-04-25 (Econometrics)
- NEP-LTV-2004-04-25 (Unemployment, Inequality & Poverty)
- NEP-URE-2004-04-25 (Urban & Real Estate Economics)
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