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Neighborhood Effects: Accomplishments and Looking Beyond Them

  • Yannis M. Ioannides
  • Giorgio Topa

The paper addresses the empirical significance of the social context in economic decisions. Decisions of individuals who share spatial and social milieus are likely to be interdependent, and econometric identification of social effects poses intricate data and methodological problems, including dealing with self-selection in spatial and socail groups. It uses a simple empirical framework to introduce social interactions effects at different levels of aggregation, and examines estimation problems into linear models, the impact of self-selection and of non linearities. It also examines neighborhood effects in job matching and proposes a research agenda that offers new techniques and data sources.

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File URL: http://ase.tufts.edu/econ/research/documents/2009/ioannidesTopa.pdf
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Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0736.

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Date of creation: 2009
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Handle: RePEc:tuf:tuftec:0736
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  32. Ethan Cohen-Cole & Giulio Zanella, 2008. "Welfare Stigma or Information Sharing? Decomposing Social Interactions Effects in Social Benefit Use," Department of Economics University of Siena 531, Department of Economics, University of Siena.
  33. Bisin, Alberto & Horst, Ulrich & Ozgur, Onur, 2006. "Rational expectations equilibria of economies with local interactions," Journal of Economic Theory, Elsevier, vol. 127(1), pages 74-116, March.
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  37. Arcidiacono, Peter & Nicholson, Sean, 2005. "Peer effects in medical school," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 327-350, February.
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