Eyo I. Herstad, Myungkou Shin
arXiv 18 Oct 2024 · Econometrics
arXiv:2410.14317 · PDF · DOI · OpenAlex · Extracted main text
We develop a model that captures peer effect heterogeneity by modeling the endogenous spillover to be linear in ordered peer outcomes. Unlike the canonical linear-in-means model, our approach accounts for the distribution of peer outcomes as well as the size of peer groups. Under a minimal condition, our model admits a unique equilibrium and is therefore tractable and identified. Simulations show our estimator has good finite sample performance. Finally, we apply our model to educational data from Norway, finding that higher-performing friends disproportionately drive GPA spillovers. Our framework provides new insights into the structure of peer effects beyond aggregate measures.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Yann Bramoullé, Habiba Djebbari \ Bernard Fortin (2009) Identification of peer effects through social networks | 1.000 | 9 | 3 | 100% |
| 2 | Ragnar Alne, Eyo I. Herstad \ Andreas Myhre (2025) How Socioeconomic and Parental Background Shape Peer Networks and Educational Spillovers | 0.811 | 4 | 2 | 100% |
| 3 | Changhui Kang (2007) Classroom peer effects and academic achievement: Quasi-randomization evidence from South Korea | 0.737 | 3 | 2 | 100% |
| 4 | Vincent Boucher, Michelle Rendall, Philip Ushchev \ Yves Zenou (2024) Toward a general theory of peer effects | 0.585 | 3 | 1 | 100% |
| 5 | Gigi Foster (2006) It's not your peers, and it's not your friends: Some progress toward understanding the educational peer effect mechanism | 0.511 | 2 | 1 | 100% |
| 6 | Jonathan Guryan, Kory Kroft \ Matthew J Notowidigdo (2009) Peer effects in the workplace: Evidence from random groupings in professional golf tournaments | 0.511 | 2 | 1 | 100% |
| 7 | Li Han \ Tao Li (2009) The gender difference of peer influence in higher education | 0.511 | 2 | 1 | 100% |
| 8 | Yann Bramoullé, Habiba Djebbari \ Bernard Fortin (2020) Peer effects in networks: A survey | 0.511 | 2 | 1 | 100% |
| 9 | Aureo De Paula (2013) Econometric analysis of games with multiple equilibria | 0.511 | 2 | 1 | 100% |
| 10 | Charles F Manski (1993) Identification of endogenous social effects: The reflection problem | 0.511 | 2 | 1 | 100% |
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