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How social interactions determine input choices and outcomes in equilibrium: Evidence from a model of study time and academic achievement

Author

Listed:
  • Todd Stinebrickner

    (University of Western Ontario and NBER)

  • Ralph Stinebrickner
  • Nirav Mehta

    (University of Western Ontario)

  • Timothy Conley

    (Western Ontario)

Abstract

Due to data limitations, few papers documenting the existence of peer effects explore the mechanisms through which they operate. This paper develops and estimates an equilibrium model of study time choices made by students, given a social network. The model is designed to exploit unique data collected in the Berea Panel Study (BPS). The study time data allow us to quantify an intuitive mechanism for social interactions: one's own study time may depend on friends' study time. The detailed social network data allow us to embed these individual study time choices in an equilibrium framework, allowing for feedback effects. We find evidence of both the direct and indirect effects of friend study time. Not taking into account equilibrium behavior would understate the effect of peers on achievement by 20-30% of a standard deviation.

Suggested Citation

  • Todd Stinebrickner & Ralph Stinebrickner & Nirav Mehta & Timothy Conley, 2015. "How social interactions determine input choices and outcomes in equilibrium: Evidence from a model of study time and academic achievement," 2015 Meeting Papers 1175, Society for Economic Dynamics.
  • Handle: RePEc:red:sed015:1175
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    References listed on IDEAS

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    Cited by:

    1. Pamela Giustinelli, 2022. "Expectations in Education: Framework, Elicitation, and Evidence," Working Papers 2022-026, Human Capital and Economic Opportunity Working Group.
    2. Jan Feld & Ulf Zölitz, 2017. "Understanding Peer Effects: On the Nature, Estimation, and Channels of Peer Effects," Journal of Labor Economics, University of Chicago Press, vol. 35(2), pages 387-428.
    3. Adriana Lleras-Muney & Matthew Miller & Shuyang Sheng & Veronica T. Sovero, 2020. "Party On: The Labor Market Returns to Social Networks and Socializing," NBER Working Papers 27337, National Bureau of Economic Research, Inc.

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    JEL classification:

    • H00 - Public Economics - - General - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J00 - Labor and Demographic Economics - - General - - - General

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