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.

Yves Zenou

Contact

yves.zenou@ifn.se

Interdisciplinary European Studies

The European Union in a Changing World Order

This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy.

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