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Measuring Peer Effects on Youth Smoking Behavior

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  • Ryo Nakajima

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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Cited by:
  1. Lawrence E. Blume & William A. Brock & Steven N. Durlauf & Rajshri Jayaraman, 2013. "Linear Social Interactions Models," NBER Working Papers 19212, National Bureau of Economic Research, Inc.
  2. Rebekka Christopoulou & Ahmed Jaber & Dean R. Lillard, 2013. "The Inter-generational and Social Transmission of Cultural Traits: Theory and Evidence from Smoking Behavior," NBER Working Papers 19304, National Bureau of Economic Research, Inc.
  3. Alberto Bisin & Andrea Moro & Giorgio Topa, 2011. "The empirical content of models with multiple equilibria in economies with social interactions," Staff Reports 504, Federal Reserve Bank of New York.
  4. ÖZGÜR, Onur & BISIN, Alberto, 2011. "Dynamic Linear Economies with Social Interactions," Cahiers de recherche 04-2011, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  5. Rosaz, Julie & Slonim, Robert & Villeval, Marie Claire, 2012. "Quitting and Peer Effects at Work," IZA Discussion Papers 6475, Institute for the Study of Labor (IZA).
  6. Brock,W.A. & Durlauf,S.N., 2005. "Social interactions and macroeconomics," Working papers 5, Wisconsin Madison - Social Systems.
  7. Steven N. Durlauf & Yannis M. Ioannides, 2010. "Social Interactions," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 451-478, 09.
  8. Ouazad, Amine & Rancière, Romain, 2011. "Credit Standards and Segregation," CEPR Discussion Papers 8300, C.E.P.R. Discussion Papers.
  9. Angelo Mele, 2013. "Approximate variational inference for a model of social interactions," Working Papers 13-16, NET Institute.
  10. Adelman, Sarah, 2013. "Keep your friends close: The effect of local social networks on child human capital outcomes," Journal of Development Economics, Elsevier, vol. 103(C), pages 284-298.
  11. Giorgio Topa & Elizabeth Setren & Meta Brown, 2011. "Do Referrals Lead to Better Matches? Evidence from a Firm's Employee," 2011 Meeting Papers 711, Society for Economic Dynamics.
  12. Angelo Mele, 2010. "Segregation in Social Networks: A Structural Approach," 2010 Meeting Papers 519, Society for Economic Dynamics.
  13. Ryota Nakamura & Marc Suhrcke & Daniel John Zizzo, 2014. "A Triple Test for Behavioral Economics Models and Public Health Policy," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 14-01, School of Economics, University of East Anglia, Norwich, UK..
  14. Daron Acemoglu & Camilo García-Jimeno & James A. Robinson, 2014. "State Capacity and Economic Development: A Network Approach," NBER Working Papers 19813, National Bureau of Economic Research, Inc.
  15. Onur Ozgur & Alberto Bisin, 2011. "Dynamic linear economies with social interactions," Levine's Working Paper Archive 786969000000000036, David K. Levine.
  16. Angelo Mele, 2010. "A Structural Model of Segregation in Social Networks," Working Papers 10-16, NET Institute.
  17. Haiqing Xu, 2010. "Social Interactions: A Game Theoretic Approach," Department of Economics Working Papers 130914, The University of Texas at Austin, Department of Economics.
  18. Jan-Dirk Schmöcker & Tsuyoshi Hatori & David Watling, 2014. "Dynamic process model of mass effects on travel demand," Transportation, Springer, vol. 41(2), pages 279-304, March.

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