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Multivariate choices and identification of social interactions

Author

Listed:
  • Ethan Cohen‐Cole
  • Xiaodong Liu
  • Yves Zenou

Abstract

This paper considers the identification of social interaction effects in the context of multivariate choices. First, we generalize the theoretical social interaction model to allow individuals to make interdependent choices in different activities. Based on the theoretical model, we propose a simultaneous equation network model and discuss the identification of social interaction effects in the econometric model. We also provide an empirical example to show the empirical salience of this model. Using the Add Health data, we find that a student's academic performance is not only affected by academic performance of his peers but also affected by screen‐related activities of his peers.

Suggested Citation

  • Ethan Cohen‐Cole & Xiaodong Liu & Yves Zenou, 2018. "Multivariate choices and identification of social interactions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(2), pages 165-178, March.
  • Handle: RePEc:wly:japmet:v:33:y:2018:i:2:p:165-178
    DOI: 10.1002/jae.2590
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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