Identification of Social Interactions through Partially Overlapping Peer Groups

• 成果类型: Article
• 署名作者: De Giorgi, Giacomo; Pellizzari, Michele; Redaelli, Silvia
• 署名单位: Stanford University; National Bureau of Economic Research; Bocconi University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.2.2.241
• 发表日期: 2010
• 页码: 241-275
• 关键词: NETWORKS

摘要

In this paper, we demonstrate that, in a context where peer groups do not overlap fully, it is possible to identify all the relevant parameters of the standard linear-in-means model of social interactions. We apply this novel identification structure to study peer effects in the choice of college major. Results show that one is more likely to choose a major when many of her peers make the same choice. We also show that peers can divert students from majors in which they have a relative ability advantage, with adverse consequences on academic performance, entry wages, and job satisfaction. (JEL I23, J24, J31, Z13)