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Peer Effects and Social Networks in Education

Author

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  • Antoni Calvó-Armengol
  • Eleonora Patacchini
  • Yves Zenou

Abstract

We develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to his/her Katz-Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual, but puts less weight to his/her distant friends. We then bring the model to the data using a very detailed dataset of adolescent friendship networks. We show that, after controlling for observable individual characteristics and unobservable network specific factors, a standard deviation increase in the Katz-Bonacich centrality increases the pupil school performance by more than 7% of one standard deviation. Copyright 2009, Wiley-Blackwell.

Suggested Citation

  • Antoni Calvó-Armengol & Eleonora Patacchini & Yves Zenou, 2009. "Peer Effects and Social Networks in Education," Review of Economic Studies, Oxford University Press, vol. 76(4), pages 1239-1267.
  • Handle: RePEc:oup:restud:v:76:y:2009:i:4:p:1239-1267
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    File URL: http://hdl.handle.net/10.1111/j.1467-937X.2009.00550.x
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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