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Testing for Peer Effects Using Genetic Data

Author

Listed:
  • John Cawley
  • Euna Han
  • Jiyoon (June) Kim
  • Edward C. Norton

Abstract

Estimating peer effects is notoriously difficult because of the reflection problem and the endogeneity of peer group formation. This paper tests for peer effects in obesity in a novel way that addresses these challenges. It addresses the reflection problem by using the alter’s genetic risk score for obesity, which is a significant predictor of obesity, is determined prior to birth, and cannot be affected by the behavior of others. It addresses the endogeneity of peer group formation by examining peers who are not self-selected: full siblings. Using data from the National Longitudinal Survey of Adolescent Health, we find evidence of positive peer effects in weight and obesity; having a sibling with a high genetic predisposition raises one’s risk of obesity, even controlling for one’s own genetic predisposition to obesity. Implications of the findings include that peer effects may be an explanation for continued worldwide increases in weight, and that, because of social multipliers, the cost-effectiveness of obesity treatment and prevention programs may have been underestimated.

Suggested Citation

  • John Cawley & Euna Han & Jiyoon (June) Kim & Edward C. Norton, 2017. "Testing for Peer Effects Using Genetic Data," NBER Working Papers 23719, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23719 Note: AG CH HC HE
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    References listed on IDEAS

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    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • I1 - Health, Education, and Welfare - - Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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