IDEAS home Printed from https://ideas.repec.org/a/eee/econom/v238y2024i1s0304407623002671.html
   My bibliography  Save this article

Binary choice with misclassification and social interactions, with an application to peer effects in attitude

Author

Listed:
  • Lin, Zhongjian
  • Hu, Yingyao

Abstract

The interaction of economic agents is one of the most important elements in economic analyses. Social interactions on subjective outcomes, behavior, or decisions, are inherently difficult to identify and estimate because these variables are prone to misclassification errors. This paper puts forth a binary choice model with misclassification and social interactions to rectify the misclassification problems in social interactions studies. We achieve the identification of the conditional choice probability of the latent dependent variable by the technique of repeated measurements and a monotonicity condition. We construct the complete likelihood function from the two repeated measurements and propose a nested pseudo likelihood algorithm for estimation. Consistency and asymptotic normality results are shown for the proposed estimation method. We illustrate the finite sample performance of the model and the estimation method by three Monte Carlo experiments and an application to the study of peer effects among students in their attitudes towards learning.

Suggested Citation

  • Lin, Zhongjian & Hu, Yingyao, 2024. "Binary choice with misclassification and social interactions, with an application to peer effects in attitude," Journal of Econometrics, Elsevier, vol. 238(1).
    • Handle: RePEc:eee:econom:v:238:y:2024:i:1:s0304407623002671
    DOI: 10.1016/j.jeconom.2023.105551
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304407623002671
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jeconom.2023.105551?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Measurement error; Misclassification; Social interactions; Nested pseudo likelihood; Large network; Peer effects; Attitude;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • I20 - Health, Education, and Welfare - - Education - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:econom:v:238:y:2024:i:1:s0304407623002671. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jeconom .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.