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Peer Effects: Social Multiplier or Social Norms?

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  • Liu, Xiaodong
  • Patacchini, Eleonora
  • Zenou, Yves

Abstract

We develop an unified model embedding different behavioral mechanisms of social interactions and design a statistical model selection test to discriminate between them in empirical applications. This framework is applied to study peer effects in education and delinquent behavior for adolescents in the United States. We find that there are strong social multiplier effects in crime while, for education, social norms matter the most. This suggests that, for crime, individual-based policies are more appropriate while, for education, group-based policies are more effective.

Suggested Citation

  • Liu, Xiaodong & Patacchini, Eleonora & Zenou, Yves, 2013. "Peer Effects: Social Multiplier or Social Norms?," CEPR Discussion Papers 9366, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:9366
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    References listed on IDEAS

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    Cited by:

    1. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    2. Vincent Boucher & Bernard Fortin, 2015. "Some Challenges in the Empirics of the Effects of Networks," Cahiers de recherche 1504, CIRPEE.
    3. Asirvatham, Jebaraj & Thomsen, Michael & Nayga, Rodolfo M. Jr. & Rouse, Heather, 2014. "Peer-Effects on Childhood Obesity: An Instrumental Variables Approach on Exogenously Assigned Peers," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170387, Agricultural and Applied Economics Association.
    4. Jin, Fei & Lee, Lung-fei, 2013. "Cox-type tests for competing spatial autoregressive models with spatial autoregressive disturbances," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 590-616.

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    More about this item

    Keywords

    group-based policy.; individual-based policy; Social networks; spatial autoregressive model;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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