Review of Economic Studies Vol. 76 No. 4 2009
Peer Effects and Social Networks in Education
Abstract
We develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to his/her Katz-Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual, but puts less weight to his/her distant friends. We then bring the model to the data using a very detailed dataset of adolescent friendship networks. We show that, after controlling for observable individual characteristics and unobservable network specific factors, a standard deviation increase in the Katz-Bonacich centrality increases the pupil school performance by more than 7% of one standard deviation.
- DOI
- 10.1111/j.1467-937x.2009.00550.x
- Volume
- 76
- Issue
- 4
- Pages
- 1239-1267
- Language
- en
- Sources
- bibtex:phds-export.bib openalex openalex crossref