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Endogenous Shocks in Social Networks: Exam Failures and Friends' Future Performance

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  • Maria Marchenko

    (Department of Economics, Vienna University of Economics and Business)

Abstract

Exam failures of the students in a specific network may influence not only the future performance of the student but also all students from their friendship networks, affecting the overall cohort's performance. Therefore, it is crucial to understand how the whole network responses to failure. The difficulty of such analysis is incorporated in the probability of the failures being highly endogenous. In this paper, I am applying the novel identification and estimation approach to deal with such endogeneity. I am exploring the dynamic data on the students' networks in HSE, Nizhniy Novgorod. The results suggest that, on average, the exam failure of the friend have a negative effect on future performance.

Suggested Citation

  • Maria Marchenko, 2019. "Endogenous Shocks in Social Networks: Exam Failures and Friends' Future Performance," Department of Economics Working Papers wuwp292, Vienna University of Economics and Business, Department of Economics.
    • Handle: RePEc:wiw:wiwwuw:wuwp292
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    1. Maria Marchenko, 2019. "Dealing with Endogenous Shocks in Dynamic Friendship Network," Department of Economics Working Papers wuwp291, Vienna University of Economics and Business, Department of Economics.

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    More about this item

    Keywords

    social networks; peer effects; exam failures; shock spillover;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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