Journal Article

Peer Effects and Social Networks in Education

Antoni Calvó-Armengol, Eleonora Patacchini and Yves Zenou

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 76, issue 4, pages 1239-1267
Published in print October 2009 | ISSN: 0034-6527
Published online October 2009 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1111/j.1467-937X.2009.00550.x
Peer Effects and Social Networks in Education

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  • Information, Knowledge, and Uncertainy
  • Demographic Economics
  • Education and Research Institutions
  • Economic Sociology

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We develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to his/her Katz-Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual, but puts less weight to his/her distant friends. We then bring the model to the data using a very detailed dataset of adolescent friendship networks. We show that, after controlling for observable individual characteristics and unobservable network specific factors, a standard deviation increase in the Katz-Bonacich centrality increases the pupil school performance by more than 7% of one standard deviation.

Keywords: D85; I21; J13; Z13

Journal Article.  13303 words.  Illustrated.

Subjects: Information, Knowledge, and Uncertainy ; Demographic Economics ; Education and Research Institutions ; Economic Sociology

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