TY  - RPRT
        AU  - Lin, Zhongjian
AU  - Vella, Francis
        TI  - Selection and Endogenous Treatment Models with Social Interactions: An Application to the Impact of Exercise on Self-Esteem
        PY  - 2021/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14167
        UR  - https://www.iza.org/index.php/publications/dp14167
        AB  - We address the estimation of sample selection and endogenous treatment models with social interactions. To model the interaction between individuals in an internally consistent matter we employ a game theoretic approach based on the use of a discrete Bayesian game. We overcome the substantial computational burden this introduces through a sequential version of the nested fixed point algorithm. We describe how our methodology can be applied to a large class of commonly employed models. We employ our approach to examine the impact of an individual's frequency of exercise on her level of self esteem in a setting where an individual's exercise frequency is treated as endogenous and is potentially influenced by her belief of her friends' exercise frequency.
        KW  - endogenous treatment
KW  - sample selection
KW  - social interactions
KW  - sequential estimation
KW  - exercise
KW  - self-esteem
        ER  -