Social Interactions, Mechanisms, and Equilibrium: Evidence from a Model of Study Time and Academic Achievement
67 Pages Posted: 18 Apr 2018
Date Written: February 21, 2018
We develop and estimate a model of student study time on a social network. The model is designed to exploit unique data collected in the Berea Panel Study. Study time data allow us to quantify an intuitive mechanism for academic social interactions: own study time may depend on friend study time in a heterogeneous manner. Social network data allow us to embed study time and resulting academic achievement in an estimable equilibrium framework. We develop a specification test that exploits the equilibrium nature of social interactions and use it to show that novel study propensity measures mitigate econometric endogeneity concerns.
Keywords: social networks, peer effects, homophily, time-use
JEL Classification: C520, C540, I200
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