We study peer effects in social interaction models where individual participation in groups is endogenous. By exploiting instruments in participation choices, we estimate the peer and contextual effects using both individual and group-level correction terms. We apply our method to study peer effects in an online training program in China, and document significant peer effects and selection bias in the duration of lecture attendance among the trainees. Our estimates suggest that ignoring sample selection would over-estimate the peer effects.
Period
23 Apr 2024
Event title
Academic Seminar at School of Finance and Business, Shanghai Normal University