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Identification and Estimation of Social Interaction-Based Models: A Changes-In-Changes Approach with an Application to Adolescent Substance Use AgEcon
Yang, Muzhe.
This paper outlines a method for detecting and assessing the strength of social interactions through a changes-in-changes design. The proposed approach is based on a linear-in-means model and aims to resolve the "reflection problem", unobserved heterogeneities and endogenous group formation that plague identification of social interactions. Using longitudinal data from Add Health with rarely collected information on peer group's composition, we explore an exogenous variation in peer's drug use induced by a "mover friend" that occurs between Add Health's survey periods. This quasi-experiment shares a similar nature of a policy intervention of removing drug-user friends from a peer group. Such treatment-control group differences together with changes over...
Tipo: Conference Paper or Presentation Palavras-chave: Social interactions; Linear-in-expectations; Linear-in-means; Difference-in-differences; Changes-in-changes; Demand and Price Analysis.
Ano: 2007 URL: http://purl.umn.edu/9800
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