TY - RPRT AU - Feld, Jan AU - Zölitz, Ulf TI - Understanding Peer Effects: On the Nature, Estimation and Channels of Peer Effects PY - 2015/Oct/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 9448 UR - https://www.iza.org/index.php/publications/dp9448 AB - This paper estimates peer effects in a university context where students are randomly assigned to sections. While students benefit from better peers on average, low-achieving students are harmed by high-achieving peers. Analyzing students' course evaluations suggests that peer effects are driven by improved group interaction rather than adjustments in teachers' behavior or students' effort. We further show, building on Angrist (2014), that classical measurement error in a setting where group assignment is systematic can lead to substantial overestimation of peer effects. With random assignment, as is the case in our setting, estimates are only attenuated. KW - higher education KW - measurement error KW - estimation bias KW - peer effects ER -