TY  - RPRT
        AU  - Bramoullé, Yann
AU  - Djebbari, Habiba
AU  - Fortin, Bernard
        TI  - Identification of Peer Effects through Social Networks
        PY  - 2007/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2652
        UR  - https://www.iza.org/publications/dp2652
        AB  - We provide new results regarding the identification of peer effects. We consider an extended version of the linear-in-means model where each individual has his own specific reference group. Interactions are thus structured through a social network. We assume that correlated unobservables are either absent, or treated as fixed effects at the component level. In both cases, we provide easy-to-check necessary and sufficient conditions for identification. We show that endogenous and exogenous effects are generally identified under network interaction, although identification may fail for some particular structures. Monte Carlo simulations provide an analysis of the effects of some crucial characteristics of a network (i.e., density, intransitivity) on the estimates of social effects. Our approach generalizes a number of previous results due to Manski (1993), Moffitt (2001), and Lee (2006).
        KW  - identification
KW  - social networks
KW  - peer effects
        ER  -