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Endogenous Network Production Functions With Selectivity, William C. Horrace, Xiaodong Liu, Eleonora Patacchini
Endogenous Network Production Functions With Selectivity, William C. Horrace, Xiaodong Liu, Eleonora Patacchini
Center for Policy Research
We consider a production function model that transforms worker inputs into outputs through peer effect networks. The distinguishing features of this production model are that the network is formal and observable through worker scheduling, and selection into the network is done by a manager. We discuss identification and suggest a variety of estimation techniques. In particular, we tackle endogeneity issues arising from selection into groups and exposure to common group factors by employing a polychotomous Heckman-type selection correction. We illustrate our method using data from the Syracuse University Men’s Basketball team, where at any point in time the coach selects …
Identification And Estimation Of Outcome Response With Heterogeneous Treatment Externalities, Tiziano Arduini, Eleonora Patacchini, Edoardo Rainone
Identification And Estimation Of Outcome Response With Heterogeneous Treatment Externalities, Tiziano Arduini, Eleonora Patacchini, Edoardo Rainone
Center for Policy Research
This paper studies the identification and estimation of treatment response with heterogeneous spillovers in a network model. We generalize the standard linear-in-means model to allow for multiple groups with between and within-group interactions. We provide a set of identification conditions of peer effects and consider a 2SLS estimation approach. Large sample properties of the proposed estimators are derived. Simulation experiments show that the estimators perform well in finite samples. The model is used to study the effectiveness of policies where peer effects are seen as a mechanism through which the treatments could propagate through the network. When interactions among groups …
The Allocation Of Time In Sleep: A Social Network Model With Sampled Data, Xiaodong Liu, Eleonora Patacchini, Edoardo Rainone
The Allocation Of Time In Sleep: A Social Network Model With Sampled Data, Xiaodong Liu, Eleonora Patacchini, Edoardo Rainone
Center for Policy Research
We analyze peer effects in sleeping behavior using a representative sample of U.S. teenagers from the National Longitudinal Survey of Adolescent Health. The sampling design of the survey causes the conventional 2SLS estimator to be inconsistent. We extend the NLS estimator in Wang and Lee (2013a) to estimate network models with sampled observations on the dependent variable. When accounting for sampling, we find that the sleeping behavior of the friends is important to shape own sleeping behavior, besides the impact of individual, family and friend characteristics.
Peer Effects In The Demand For Housing Quality, Eleonora Patacchini, Giuseppe Venanzoni-Sapienza
Peer Effects In The Demand For Housing Quality, Eleonora Patacchini, Giuseppe Venanzoni-Sapienza
Center for Policy Research
Using detailed data on friendship networks within neighborhoods, we investigate the importance of social interactions in one's own residential neighborhood in the demand for housing quality. We find evidence consistent with the presence of peer effects, especially for households living in urban areas. Our findings are in line with the prediction of a model where conformity preferences are the key element underlying economic outcomes that involve interactions with peers.