Identification of Peer Effects using Group Size Variation

26 Pages Posted: 20 Dec 2006

See all articles by Xavier D'Haultfœuille

Xavier D'Haultfœuille

Center for Research in Economics and Statistics (CREST)

Laurent Davezies

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST)

Denis Fougère

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); National Center for Scientific Research (CNRS); IZA Institute of Labor Economics

Multiple version iconThere are 3 versions of this paper

Date Written: October 2006

Abstract

This paper considers the semiparametric identification of endogenous and exogenous peer effects based on group size variation. We show that Lee (2006)'s linear-in-means model is generically identified, even when all members of the group are not observed. While unnecessary in general, homoskedasticity may be required in special cases to recover all parameters. Extensions to asymmetric responses to peers and binary outcomes are also considered. Once more, most parameters are semiparametrically identified under weak conditions. However, recovering all of them requires more stringent assumptions. Eventually, we bring theoretical evidence that the model is more adapted to small groups.

Keywords: Linear-in-means model, social interactions, semiparametric identification

JEL Classification: C14, C21, C25

Suggested Citation

d'Haultfoeuille, Xavier and Davezies, Laurent and Fougere, Denis, Identification of Peer Effects using Group Size Variation (October 2006). CEPR Discussion Paper No. 5865, Available at SSRN: https://ssrn.com/abstract=952794

Xavier D'Haultfoeuille (Contact Author)

Center for Research in Economics and Statistics (CREST) ( email )

5 avenue Henry le Chatelier
Palaiseau, 91120
France

Laurent Davezies

National Institute of Statistics and Economic Studies (INSEE) - Center for Research in Economics and Statistics (CREST) ( email )

15 Boulevard Gabriel Peri
Malakoff Cedex, 1 92245
France

Denis Fougere

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE) ( email )

15, Boulevard Adolphie PINARD
92245 Malakoff Cedex
France
+33 1 4117 7713 (Phone)
+33 1 4117 7634 (Fax)

National Center for Scientific Research (CNRS)

3, rue Michel-Ange
Paris cedex 16, 75794
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
12
Abstract Views
536
PlumX Metrics