A new identification approach distinguishing effort-affecting preference shocks from other GPA shocks yields peer effect estimates 40% higher than GPA-proxy methods when networks include isolated students, shown in US high school data.
(2022): Name your friends, but only five? the importance of censoring in peer effects estimates using social network data, Journal of Labor Economics, 40, 779--805
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Identifying Peer Effects in Networks with Unobserved Effort and Isolated Students
A new identification approach distinguishing effort-affecting preference shocks from other GPA shocks yields peer effect estimates 40% higher than GPA-proxy methods when networks include isolated students, shown in US high school data.