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Review of Economic Studies Vol. 74 No. 3 2007

Measuring Peer Effects on Youth Smoking Behaviour

Ryo Nakajima

University of Tsukuba

Abstract

This paper examines the role of peer effects in teenagers' smoking behaviour in the U.S.A. I present a random utility model that incorporates complementarity between individual and peer smoking. A Markov process model of smoking interactions between individuals is presented. I estimate the structural parameters of the model using a steady-state distribution that is determined by the Markov process. The empirical results strongly support the presence of positive peer effects. Interestingly, peer interactions are found to be stronger within the same gender than across genders. The same result is found for race. Moreover, a multiplier effect is found.

DOI
10.1111/j.1467-937x.2007.00448.x
Volume
74
Issue
3
Pages
897-935
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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