Discussion paper

DP10126 Neighborhood and Network Effects

In this chapter, we provide an overview of research on neighborhoods and social networks and their role in shaping behavior and economic outcomes. We include discussion of empirical and theoretical analyses of the role of neighborhoods and social networks in crime, education and labor-market outcomes. In particular, we discuss in detail identification problems in peer, neighborhood and network effects and the policy implications of integrating the social and the geographical space, especially for ethnic minorities.


Zenou, Y and G Topa (2014), ‘DP10126 Neighborhood and Network Effects‘, CEPR Discussion Paper No. 10126. CEPR Press, Paris & London. https://cepr.org/publications/dp10126