TY  - RPRT
        AU  - Davezies, Laurent
AU  - D'Haultfoeuille, Xavier
AU  - Fougère, Denis
        TI  - Identification of Peer Effects Using Group Size Variation
        PY  - 2006/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2324
        UR  - https://www.iza.org/publications/dp2324
        AB  - This paper considers the semiparametric identification of endogenous and exogenous peer effects based on group size variation. We show that Lee (2006)’s linear-in-means model is generically identified, even when all members of the group are not observed. While unnecessary in general, homoskedasticity may be required in special cases to recover all parameters. Extensions to asymmetric responses to peers and binary outcomes are also considered. Once more, most parameters are semiparametrically identified under weak conditions. However, recovering all of them requires more stringent assumptions. Eventually, we bring theoretical evidence that the model is more adapted to small groups.
        KW  - semiparametric identification
KW  - linear-in-means model
KW  - social interactions
        ER  -