Identification of Social Interactions through Partially Overlapping Peer Groups

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2010
Volume: 2
Issue: 2
Pages: 241-75

Authors (3)

Giacomo De Giorgi (not in RePEc) Michele Pellizzari (Université de Genève) Silvia Redaelli (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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)

Technical Details

RePEc Handle
repec:aea:aejapp:v:2:y:2010:i:2:p:241-75
Journal Field
General
Author Count
3
Added to Database
2026-01-25