Peer effects and multiple equilibria in the risky behavior of friends

Citation

Card, D. & Giuliano, L. (2013). Peer effects and multiple equilibria in the risky behavior of friends. Review of Economics and Statistics. vol. 95 (4) pp. 1130-1149

Abstract

We study social interactions in the initiation of sex and other risky behaviors by best friend pairs in the Add Health panel. Focusing on friends with minimal experience at the baseline interview, we estimate bivariate ordered-choice models that include both peer effects and unobserved heterogeneity. We find significant peer effects in sexual initiation: the likelihood of initiating intercourse within a year increases by almost 5 percentage points (on an 11% base rate) if one's friend also initiates intercourse. Similar effects are present for smoking, marijuana use, and truancy. We find larger effects for females and important asymmetries in nonreciprocated friendships. © 2013 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

URL

http://dx.doi.org/10.1162%2FREST_a_00340

Notes

Export Date: 8 November 2013

Reference Type

Journal Article

Journal Title

Review of Economics and Statistics

Author(s)

Card, D.
Giuliano, L.

Year Published

2013

Volume Number

95

Issue Number

4

Pages

1130-1149

DOI

10.1162/REST_a_00340

Reference ID

4667