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Multivariate choices and identification of social interactions
Authors:Ethan Cohen‐Cole  Xiaodong Liu  Yves Zenou
Institution:1. Econ One Research, Berkeley, CA, USA;2. Department of Economics, University of Colorado, Boulder, CO, USA;3. Department of Economics, Monash University, Melbourne, Victoria, Australia;4. IFN, Stockholm, Sweden
Abstract:This paper considers the identification of social interaction effects in the context of multivariate choices. First, we generalize the theoretical social interaction model to allow individuals to make interdependent choices in different activities. Based on the theoretical model, we propose a simultaneous equation network model and discuss the identification of social interaction effects in the econometric model. We also provide an empirical example to show the empirical salience of this model. Using the Add Health data, we find that a student's academic performance is not only affected by academic performance of his peers but also affected by screen‐related activities of his peers.
Keywords:
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