Endogenous Peer Effects: Local Aggregate or Local Average?

Reprint No. 2014:34

Author(s): Xiaodong Liu, Eleonora Patacchini and Yves ZenouYear: 2014 Title: Journal of Economic Behavior & Organization Volume (No.): 103 (July) Pages: 39–59
Online article (restrictions may apply)

We develop a unified model embedding different behavioral mechanisms of social interac-tions and design a statistical model selection test to differentiate between them in empiricalapplications. This framework is applied to study peer effects in education (effort in study-ing) and sport activities for adolescents in the United States. We find that, for education,students tend to conform to the social norm of their friends while, for sport activities, boththe social multiplier and the social norm effect matter.

Liu, Xiaodong, Eleonora Patacchini and Yves Zenou (2014), "Endogenous Peer Effects: Local Aggregate or Local Average?". Journal of Economic Behavior & Organization 103(July), 39–59.

Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

Sick of Inequality.jpg

In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

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