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Identification of Peer Effects Using Group Size Variation

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Author Info

  • Davezies, Laurent

    ()
    (University of Paris 13)

  • d'Haultfoeuille, Xavier

    ()
    (CREST-INSEE)

  • Fougère, Denis

    ()
    (CREST)

Abstract

This paper considers the semiparametric identification of endogenous and exogenous peer effects based on group size variation. We show that Lee (2006)’s linear-in-means model is generically identified, even when all members of the group are not observed. While unnecessary in general, homoskedasticity may be required in special cases to recover all parameters. Extensions to asymmetric responses to peers and binary outcomes are also considered. Once more, most parameters are semiparametrically identified under weak conditions. However, recovering all of them requires more stringent assumptions. Eventually, we bring theoretical evidence that the model is more adapted to small groups.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2324.

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Length: 25 pages
Date of creation: Sep 2006
Date of revision:
Publication status: published in: Econometrics Journal, 2009, 12 (3), 397-413
Handle: RePEc:iza:izadps:dp2324

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Keywords: semiparametric identification; linear-in-means model; social interactions;

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References

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  1. Bramoullé, Yann & Djebbari, Habiba & Fortin, Bernard, 2009. "Identification of peer effects through social networks," Journal of Econometrics, Elsevier, vol. 150(1), pages 41-55, May.
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Citations

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Cited by:
  1. Alberto Bisin & Andrea Moro & Giorgio Topa, 2011. "The Empirical Content of Models with Multiple Equilibria in Economies with Social Interactions," NBER Working Papers 17196, National Bureau of Economic Research, Inc.
  2. Bramoullé, Yann & Djebbari, Habiba & Fortin, Bernard, 2009. "Identification of peer effects through social networks," Journal of Econometrics, Elsevier, vol. 150(1), pages 41-55, May.
  3. Blume, Lawrence E. & Brock, William A. & Durlauf, Steven N. & Jayaraman, Rajshri, 2013. "Linear Social Interactions Models," Economics Series 298, Institute for Advanced Studies.
  4. Vincent Boucher & Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2010. "Do Peers Affect Student Achievement? Evidence from Canada Using Group Size Variation," CIRANO Working Papers 2010s-08, CIRANO.
  5. Onur Ozgur & Alberto Bisin, 2011. "Dynamic linear economies with social interactions," Levine's Working Paper Archive 786969000000000036, David K. Levine.
  6. Yaman, F., 2011. "Ethnic externalities and 2nd generation immigrants," Working Papers 11/08, Department of Economics, City University London.
  7. 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.
  8. Qu, Xi & Lee, Lung-fei, 2012. "LM tests for spatial correlation in spatial models with limited dependent variables," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 430-445.
  9. Amara Mohamed, 2014. "Gibrat's Law and peer group effect: the case of Tunisian small manufacturing companies," Economics Bulletin, AccessEcon, vol. 34(1), pages 373-384.
  10. Lucifora, Claudio & Tonello, Marco, 2012. "Students' Cheating as a Social Interaction: Evidence from a Randomized Experiment in a National Evaluation Program," IZA Discussion Papers 6967, Institute for the Study of Labor (IZA).
  11. Chi, Feng & Yang, Nathan, 2010. "Twitter Adoption in Congress: Who Tweets First?," MPRA Paper 23225, University Library of Munich, Germany.

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