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Endogenous Treatment Models with Social Interactions: An Application to the Impact of Exercise on Self-Esteem

Zhongjian Lin, Francis Vella

arXiv 26 Aug 2024 · Econometrics · publishedJournal of Political Economy (2025) · 1 citations (OpenAlex)

arXiv:2408.13971 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We address the estimation of endogenous treatment models with social interactions in both the treatment and outcome equations. We model the interactions between individuals in an internally consistent manner via a game theoretic approach based on discrete Bayesian games. This introduces a substantial computational burden in estimation which we address through a sequential version of the nested fixed point algorithm. We also provide some relevant treatment effects, and procedures for their estimation, which capture the impact on both the individual and the total sample. Our empirical application examines the impact of an individual's exercise frequency on her level of self-esteem. We find that an individual's exercise frequency is influenced by her expectation of her friends'. We also find that an individual's level of self-esteem is affected by her level of exercise and, at relatively lower levels of self-esteem, by the expectation of her friends' self-esteem.

Citation extraction

58
references
78
in-text mentions
58
distinct cited
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self-citations
11,715
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Lin, Z. and Y. Hu (2024) Binary choice with misclassification and social interactions, with an application to peer effects in attitude self0.92843100%
2Lin, Z. and H. Xu (2017) Estimation of social–influence–dependent peer pressures in a large network game self0.87452100%
3Lee, L.-f., J. Li, and X. Lin (2014) Binary choice models with social network under heterogeneous rational expectations0.81142100%
4Heckman, J. J (1979) Sample selection bias as a specification error0.73732100%
5Xu, H (2018) Social interactions in large networks: A game theoretic approach0.73732100%
6Aguirregabiria, V. and P. Mira (2007) Sequential estimation of dynamic discrete games0.64422100%
7Brock, W. and S. Durlauf (2001) Discrete choice with social interactions0.64422100%
8Dai, M. and X. Tang (2015) Regulation and capacity competition in health care: Evidence from us dialysis markets0.51121100%
9Fox, K. R (2000) The effects of exercise on self-perceptions and self-esteem0.51121100%
10Roy, A (1951) Some thoughts on the distribution of earnings0.51121100%

Showing the top 10 of 58 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Identifying Treatment and Spillover Effects Using Exposure Contrasts0.40511
2Social Interactions Models with Latent Structures0.40511