%0 Report
        %A Lin, Zhongjian
%A Vella, Francis
        %T Selection and Endogenous Treatment Models with Social Interactions: An Application to the Impact of Exercise on Self-Esteem
        %D 2021
        %8 2021 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 14167
        %U https://www.iza.org/publications/dp14167
        %X 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.
        %K endogenous treatment
%K sample selection
%K social interactions
%K sequential estimation
%K exercise
%K self-esteem