The Perils of Peer Effects

@article{Angrist2013ThePO,
  title={The Perils of Peer Effects},
  author={Joshua David Angrist},
  journal={ERN: Other Econometrics: Econometric Model Construction},
  year={2013}
}
  • J. Angrist
  • Published 2013
  • Psychology, Economics
  • ERN: Other Econometrics: Econometric Model Construction
Individual outcomes are highly correlated with group average outcomes, a fact often interpreted as a causal peer effect. Without covariates, however, outcome-on-outcome peer effects are vacuous, either unity or, if the average is defined as a leave-out mean, determined by a generic intraclass correlation coefficient. When pre-determined peer characteristics are introduced as covariates in a model linking individual outcomes with group averages, the question of whether peer effects or social… Expand
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