How (not) to Choose Peers in Studying Groups
This paper analyzes social group formation when agents are subject to peer effects within groups increasing human capital and instantaneous utility. When agents are heterogeneous on two dimensions, ability and social skills, and monetary payments are not feasible the model predicts segregation at the top and at the bottom of the attribute space and bunching for heterogeneous intermediate types. Groups may be heterogeneous in taste types and more heterogeneous types are more likely to participate. The equilibrium allocation does not induce cost-efficient human capital accumulation. Introducing ability tracking may produce beneficial results despite decreasing differences in human capital production.
|Date of creation:||May 2006|
|Date of revision:|
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- Jacob M. Markman & Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2003.
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DP-64, Department of Economics, Williams College.
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The Quarterly Journal of Economics,
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- Bruce Sacerdote, 2000. "Peer Effects with Random Assignment: Results for Dartmouth Roommates," NBER Working Papers 7469, National Bureau of Economic Research, Inc.
- David J. Zimmerman, 2003.
"Peer Effects in Academic Outcomes: Evidence from a Natural Experiment,"
The Review of Economics and Statistics,
MIT Press, vol. 85(1), pages 9-23, February.
- Zimmerman, David J., 1999. "Peer Effects in Academic Outcomes: Evidence From a Natural Experiment," Williams Project on the Economics of Higher Education DP-52, Department of Economics, Williams College.
- Schneeweis, Nicole & Winter-Ebmer, Rudolf, 2005.
"Peer Effects in Austrian Schools,"
CEPR Discussion Papers
5018, C.E.P.R. Discussion Papers.
- Schneeweis, Nicole & Winter-Ebmer, Rudolf, 2005. "Peer Effects in Austrian Schools," Economics Series 170, Institute for Advanced Studies.
- Nicole Schneeweis & Rudolf Winter-Ebmer, 2005. "Peer effects in Austrian schools," Economics working papers 2005-02, Department of Economics, Johannes Kepler University Linz, Austria.
- Shubik, Martin & Wooders, Myrna Holtz, 1983. "Approximate cores of replica games and economies : Part II: Set-up costs and firm formation in coalition production economies," Mathematical Social Sciences, Elsevier, vol. 6(3), pages 285-306, December.
- Epple, Dennis & Newlon, Elizabeth & Romano, Richard, 2002.
"Ability tracking, school competition, and the distribution of educational benefits,"
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Elsevier, vol. 83(1), pages 1-48, January.
- Dennis Epple & Elizabeth Newlon & Richard Romano, 2000. "Ability Tracking, School Competition, and the Distribution of Educational Benefits," NBER Working Papers 7854, National Bureau of Economic Research, Inc.
- McEwan, Patrick J., 2003. "Peer effects on student achievement: evidence from Chile," Economics of Education Review, Elsevier, vol. 22(2), pages 131-141, April.
- Donald Robertson & James Symons, 2003.
"Do Peer Groups Matter? Peer Group versus Schooling Effects on Academic Attainment,"
London School of Economics and Political Science, vol. 70(277), pages 31-53, February.
- Donald Robertson & James Symons, 1996. "Do peer Groups Matter? Peer Groups versus Schooling Effects on Academic Attainment," CEP Discussion Papers dp0311, Centre for Economic Performance, LSE.
- James J. Heckman & Jora Stixrud & Sergio Urzua, 2006.
"The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior,"
NBER Working Papers
12006, National Bureau of Economic Research, Inc.
- James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
- Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
- Esfandiar Maasoumi & Daniel Millimet & Vasudha Rangaprasad, 2005. "Class Size and Educational Policy: Who Benefits from Smaller Classes?," Econometric Reviews, Taylor & Francis Journals, vol. 24(4), pages 333-368.
- Conley, John P. & Wooders, Myrna H., 2001. "Tiebout Economies with Differential Genetic Types and Endogenously Chosen Crowding Characteristics," Journal of Economic Theory, Elsevier, vol. 98(2), pages 261-294, June.
- Kaneko, Mamoru & Wooders, Myrna Holtz, 1986. "The core of a game with a continuum of players and finite coalitions: The model and some results," Mathematical Social Sciences, Elsevier, vol. 12(2), pages 105-137, October.
- Caroline M. Hoxby, 2000. "The Effects of Class Size on Student Achievement: New Evidence from Population Variation," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1239-1285.
- Kaneko, Mamoru & Wooders, Myrna Holtz, 1996. "The Nonemptiness of the f-Core of a Game without Side Payments," International Journal of Game Theory, Springer, vol. 25(2), pages 245-58.
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