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Gender and racial peer effects with endogenous network formation

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  • Hsieh, Chih-Sheng
  • Lin, Xu

Abstract

We apply a high order spatial autoregressive (SAR) model to simultaneously capture heterogeneous peer effects from multiple gender and racial groups, as well as endogenous network formation. In students’ GPA and smoking behaviors, we find that within-gender endogenous effects are stronger than cross-gender effects. Females and whites are more sensitive to peer influences and more influential than other students. Intra-race spillover effects are stronger than inter-race effects for whites, but not for non-whites. Homophily on observed and unobserved characteristics are important for friendship formation. However, the formation of friendship is not necessary motivated by common interest in outcomes such as smoking. Our findings suggest that coeducational or desegregated schooling may help increase academic achievement, but not reduce smoking frequency.

Suggested Citation

  • Hsieh, Chih-Sheng & Lin, Xu, 2017. "Gender and racial peer effects with endogenous network formation," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 135-147.
  • Handle: RePEc:eee:regeco:v:67:y:2017:i:c:p:135-147
    DOI: 10.1016/j.regsciurbeco.2017.09.001
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    Cited by:

    1. Laurens Cherchye & Sam Cosaert & Thomas Demuynck & Bram De Rock, 2017. "Group consumption with caring individuals," Working Papers of Department of Economics, Leuven 598911, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    2. Ushchev, Philip & Zenou, Yves, 2018. "Social Norms in Networks," CEPR Discussion Papers 13250, C.E.P.R. Discussion Papers.
    3. Julian Reif, 2019. "A Model Of Addiction And Social Interactions," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 759-773, April.

    More about this item

    Keywords

    Bayesian estimation; Endogenous network; Gender peer effect; Racial peer effect; Spatial autoregressive;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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