Peer Effects in Adolescents’ Delinquent Behaviors: Evidence from a Binary Choice Network Model

Citation

Lin, Xu (2014). Peer Effects in Adolescents’ Delinquent Behaviors: Evidence from a Binary Choice Network Model. Regional Science and Urban Economics. vol. 46 pp. 73-92

Abstract

This paper studies peer influences in adolescents’ deviant behaviors, including drinking alcohol, doing dangerous things, skipping school and physical fighting, by a binary choice network model with heterogenous rational expectations proposed in Lee et al. (2014). For a wide range of parameter values for social interactions, this model has a unique equilibrium and is not subject to multiple equilibria and other model coherency related issues for discrete choice models. I specify peer reference group based on actual friendship networks. The data are from National Longitudinal Study of Adolescent Health (Add Health). A school fixed effect strategy is employed to control for the confounding effects. Two ways of calculating marginal effects are evaluated. Robustness analysis is performed with regard to several alternative spatial weights matrices. I find that both endogenous and contextual effects exist in all the activities considered, even after controlling for school fixed effects. Similar to the case of continuous variables, the results are robust to several alternative specifications of the weighting matrix based on friend heterogeneity, providing justification for the common practice of assigning equal weight among friends. The changes in the results under the friendship reciprocity assumption indicate the relevance of the real friendship nomination network.

URL

http://www.sciencedirect.com/science/article/pii/S0166046214000179

Keyword(s)

peer effect

Reference Type

Journal Article

Journal Title

Regional Science and Urban Economics

Author(s)

Lin, Xu

Year Published

2014

Volume Number

46

Pages

73-92

DOI

10.1016/j.regsciurbeco.2014.02.001

Reference ID

4874