2014

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.


Reference:
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.

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

About the book

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