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.
(2023): Peer effects and endogenous social interactions, Journal of Econometrics, 235, 1203--1214
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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.