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Measuring Peer Effects on Youth Smoking Behavior

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Author Info
Ryo Nakajima

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Abstract

This paper examines the role of peer effects in smoking behavior using data of middle and high school students in the United States. I present a random utility model that explicitly incorporates complementarity between individual and peer smokings. A Markov process model of smoking interactions between individuals is presented, under the assumption that such interactions occur frequently. I estimate the structural parameters of the model using a steady state distribution that is uniquely determined by the Markov process. The empirical results strongly support the presence of positive peer effects in smoking behavior among young people. Interestingly, peer interactions are found to be stronger within the same gender than across genders. The same result is found for race. Moreover, a multiplier effect is found. The impact of a tax on youth smoking increases by a factor of 1.5 when peer interactions are present.

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Paper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0600.

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Date of creation: Mar 2004
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Handle: RePEc:dpr:wpaper:0600

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bisin, Alberto & Horst, Ulrich & Ozgur, Onur, 2006. "Rational expectations equilibria of economies with local interactions," Journal of Economic Theory, Elsevier, vol. 127(1), pages 74-116, March. [Downloadable!] (restricted)
  2. Marianne Bertrand & Erzo F. P. Luttmer & Sendhil Mullainathan, 2000. "Network Effects And Welfare Cultures," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 1019-1055, August. [Downloadable!] (restricted)
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  3. DeCicca, Philip & Kenkel, Donald & Mathios, Alan, 2000. " Racial Difference in the Determinants of Smoking Onset," Journal of Risk and Uncertainty, Springer, vol. 21(2-3), pages 311-40, November. [Downloadable!] (restricted)
  4. Jonathan Gruber & Jonathan Zinman, 2000. "Youth Smoking in the U.S.: Evidence and Implications," NBER Working Papers 7780, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-42, August. [Downloadable!] (restricted)
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  6. Takeshi Amemiya, 1975. "Qualitative Response Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 4, number 3, pages 5-30 National Bureau of Economic Research, Inc. [Downloadable!]
  7. Becker, Gary S, 1991. "A Note on Restaurant Pricing and Other Examples of Social Influences on Price," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 1109-16, October. [Downloadable!] (restricted)
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  8. Peter Arcidiacono & Sean Nicholson, 2002. "Peer Effects in Medical School," NBER Working Papers 9025, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Blume Lawrence E., 1993. "The Statistical Mechanics of Strategic Interaction," Games and Economic Behavior, Elsevier, vol. 5(3), pages 387-424, July. [Downloadable!] (restricted)
  10. Alejandro Gaviria & Steven Raphael, 2001. "School-Based Peer Effects And Juvenile Behavior," The Review of Economics and Statistics, MIT Press, vol. 83(2), pages 257-268, May. [Downloadable!] (restricted)
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  11. Lewit, Eugene M & Coate, Douglas & Grossman, Michael, 1981. "The Effects of Government Regulation on Teenage Smoking," Journal of Law & Economics, University of Chicago Press, vol. 24(3), pages 545-69, December.
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  12. Frank J. Chaloupka & Michael Grossman, 1996. "Price, Tobacco Control Policies and Youth Smoking," NBER Working Papers 5740, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Bruce A. Weinberg & Patricia B. Reagan & Jeffrey J. Yankow, 2004. "Do Neighborhoods Affect Hours Worked? Evidence from Longitudinal Data," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 891-924, October. [Downloadable!]
  14. Jonathan Gruber, 2000. "Youth Smoking in the U.S.: Prices and Policies," NBER Working Papers 7506, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Edward L. Glaeser & Jose Scheinkman, 2000. "Non-Market Interactions," NBER Working Papers 8053, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  16. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
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  1. Steven N. Durlauf & Yannis M. Ioannides, 2009. "Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0739, Department of Economics, Tufts University. [Downloadable!]
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