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Utilizing spatial autoregressive models to identify peer effects among adolescents

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  • Xu Lin

Abstract

This study analyzes peer influences in a variety of adolescent developmental outcomes and explores the robustness of the results with regard to alternative specifications of the interaction matrix and the model. I employ the spatial autoregressive (SAR) model with group fixed effects in Lee et al. (Econom J 13(2):145–176, 2010 ) to separately identify endogenous, contextual, and correlated effects. I find evidence for both endogenous and contextual effects for all outcomes under consideration, even after controlling for confounding effects. I also find that a simple spatial weights matrix with equal weight among friends will serve the estimation purpose satisfactorily for the standard SAR model with a single row-normalized weighting matrix. The results are sensitive to the friendship reciprocity assumption as well as alternative model specifications. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Xu Lin, 2015. "Utilizing spatial autoregressive models to identify peer effects among adolescents," Empirical Economics, Springer, vol. 49(3), pages 929-960, November.
    • Handle: RePEc:spr:empeco:v:49:y:2015:i:3:p:929-960
    DOI: 10.1007/s00181-014-0897-4
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    Cited by:

    1. Li, Junbao & Shi, Zhanzhong & He, Chengying & Lv, Chengshuang, 2023. "Peer effects on corporate R&D investment policies: A spatial panel model approach," Journal of Business Research, Elsevier, vol. 158(C).
    2. Giovanni Abbiati & Jonathan Pratschke, 2021. "‘Like with Like’ or ‘Do Like’? Modelling Peer Effects in The Classroom," CSEF Working Papers 603, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    3. Hui Zhao & Ao Lei & Yuhui Li & Dingjun Hong, 2023. "The Sectoral and Regional Peer Influences on Heavy-Pollution Corporate Environmental, Social, and Governance Performance," Sustainability, MDPI, vol. 15(17), pages 1-42, August.
    4. Arthur Lewbel & Xi Qu & Xun Tang, 2023. "Social Networks with Unobserved Links," Journal of Political Economy, University of Chicago Press, vol. 131(4), pages 898-946.
    5. Presler, Jonathan L., 2022. "You are who you eat with: Academic peer effects from school lunch lines," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 43-58.
    6. Oleg Poldin & Diliara Valeeva & Maria Yudkevich, 2016. "Which Peers Matter: How Social Ties Affect Peer-group Effects," Research in Higher Education, Springer;Association for Institutional Research, vol. 57(4), pages 448-468, June.
    7. Arthur Lewbel & Xi Qu & Xun Tang, 2021. "Social Networks with Mismeasured Links," Boston College Working Papers in Economics 1031, Boston College Department of Economics.
    8. Federico Martellosio & Grant Hillier, 2019. "Adjusted QMLE for the spatial autoregressive parameter," Papers 1909.08141, arXiv.org.
    9. Jonathan Norris, 2019. "Identify economics: social influence and skill development," Working Papers 1908, University of Strathclyde Business School, Department of Economics.
    10. Jonathan Pratschke & Giovanni Abbiati, 2023. "“Like with like” or “do like?” Modeling peer effects in the classroom," Social Science Quarterly, Southwestern Social Science Association, vol. 104(3), pages 265-280, May.
    11. Presler, Jonathan, 2021. "You Are Who You Eat With: Academic Peer Effects from School Lunch Lines," Working Papers 21-2, Sinquefield Center for Applied Economic Research, Saint Louis University.
    12. Bernhard Christopher Dannemann, 2020. "Better Off On Their Own? How Peer Effects Determine International Patterns of the Mathematics Gender Achievement Gap," Working Papers V-433-20, University of Oldenburg, Department of Economics, revised Nov 2020.
    13. Arthur Lewbel & Xi Qu & Xun Tang, 2024. "Ignoring measurement errors in social networks," The Econometrics Journal, Royal Economic Society, vol. 27(2), pages 171-187.
    14. Julián Ramajo & José Manuel Cordero & Miguel Ángel Márquez, 2017. "European regional efficiency and geographical externalities: a spatial nonparametric frontier analysis," Journal of Geographical Systems, Springer, vol. 19(4), pages 319-348, October.
    15. Matias Berthelon & Eric Bettinger & Diana I. Kruger & Alejandro Montecinos-Pearce, 2019. "The Structure of Peers: The Impact of Peer Networks on Academic Achievement," Research in Higher Education, Springer;Association for Institutional Research, vol. 60(7), pages 931-959, November.
    16. Martellosio, Federico & Hillier, Grant, 2020. "Adjusted QMLE for the spatial autoregressive parameter," Journal of Econometrics, Elsevier, vol. 219(2), pages 488-506.

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    More about this item

    Keywords

    Peer effect; Spatial autoregressive; Friendship network; Heterogeneity; C21; I21; J13;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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