DP9366 Peer Effects: Social Multiplier or Social Norms?
|Author(s):||Xiaodong Liu, Eleonora Patacchini, Yves Zenou|
|Publication Date:||February 2013|
|Keyword(s):||group-based policy., individual-based policy, Social networks, spatial autoregressive model|
|JEL(s):||A14, D85, Z13|
|Programme Areas:||Labour Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=9366|
We develop an unified model embedding different behavioral mechanisms of social interactions and design a statistical model selection test to discriminate between them in empirical applications. This framework is applied to study peer effects in education and delinquent behavior for adolescents in the United States. We find that there are strong social multiplier effects in crime while, for education, social norms matter the most. This suggests that, for crime, individual-based policies are more appropriate while, for education, group-based policies are more effective.