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Testing Random Assignment To Peer Groups

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  • Koen Jochmans

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Identification of peer effects is complicated by the fact that the individuals under study may self-select their peers. Random assignment to peer groups has proven useful to sidestep such a concern. In the absence of a formal randomization mechanism it needs to be argued that assignment is `as good as' random. This paper introduces a simple yet powerful test to do so. We provide theoretical results for this test. As a by-product we equally obtain such results for an approach popularized by Guryan, Kroft and Notowidigdo (2009). These results help to explain why this approach suffers from low power, as has been observed elsewhere. Our approach can equally be used to test for the presence of peer effects in the linear-in-means model without modification.

Suggested Citation

  • Koen Jochmans, 2023. "Testing Random Assignment To Peer Groups," Post-Print hal-04077423, HAL.
    • Handle: RePEc:hal:journl:hal-04077423
    DOI: 10.1002/jae.2953
    Note: View the original document on HAL open archive server: https://hal.science/hal-04077423
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    References listed on IDEAS

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    Cited by:

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    2. Carneiro, Pedro & Cruz Aguayo, Yyannu & Salvati, Francesca & Schady, Norbert, 2023. "The Effect of Classroom Rank on Learning throughout Elementary School: Experimental Evidence from Ecuador," IZA Discussion Papers 16384, Institute of Labor Economics (IZA).
    3. Pedro Carneiro & Yyannu Cruz Aguayo & Francesca Salvati & Norbert Schady, 2024. "The Effect of Classroom Rank on Learning Throughout Elementary School: Experimental Evidence from Ecuador," CESifo Working Paper Series 11456, CESifo.
    4. Jonas Radbruch & Amelie Schiprowski, 2020. "Interview Sequences and the Formation of Subjective Assessments," ECONtribute Discussion Papers Series 045, University of Bonn and University of Cologne, Germany.

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    More about this item

    Keywords

    Asymptotic power; Bias; Fixed effects; Peer effects; Random assignment; Test;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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