The use of instrumental variables in peer effects models

Stephanie Marees Ljuba Von Hinke Kessler Scholder; George Leckie; Cheti Nicoletti

doi:10.1111/obes.12299

The use of instrumental variables in peer effects models

Stephanie Marees Ljuba Von Hinke Kessler Scholder, George Leckie, Cheti Nicoletti

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Instrumental variables are often used to identify peer effects. This paper shows that
instrumenting the \peer average outcome" with \peer average characteristics" requires the researcher to include the instrument at the individual level as an explanatory variable. We highlight the bias that occurs when failing to do this.

Original language	English
Journal	Oxford Bulletin of Economics and Statistics
Early online date	4 Feb 2019
DOIs	https://doi.org/10.1111/obes.12299
Publication status	E-pub ahead of print - 4 Feb 2019

Bibliographical note

Keywords

Instrumental variables
Peer effects
Bias

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10.1111/obes.12299

The Use of Instrumental Variables in Peer EffectsModels
©2019 The Authors.
Final published version, 101 KBLicence: CC BY

Cheti Nicoletti
- cheti.nicolettiyork.acuk
- Economics - Professor
Person: Academic

Cite this

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KW - Bias

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The use of instrumental variables in peer effects models

Abstract

Bibliographical note

Keywords

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Cheti Nicoletti

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