The Use of Instrumental Variables in Peer Effects Models

Instrumental variables are often used to identify peer effects. This paper shows that instrumenting the ‘peer average outcome’ with ‘peer average characteristics’ requires the researcher to include the instrument at the individual level as an explanatory variable. We highlight the bias that occurs w...

Descripción completa

Detalles Bibliográficos
Autores principales: von Hinke, Stephanie, Leckie, George, Nicoletti, Cheti
Formato: Online Artículo Texto
Lenguaje:English
Publicado: John Wiley and Sons Inc. 2019
Materias:
Practitioners' Corner
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6849846/
https://www.ncbi.nlm.nih.gov/pubmed/31736533
http://dx.doi.org/10.1111/obes.12299
_version_ 1783469292248891392
author von Hinke, Stephanie
Leckie, George
Nicoletti, Cheti
author_facet von Hinke, Stephanie
Leckie, George
Nicoletti, Cheti
author_sort von Hinke, Stephanie
collection PubMed
description Instrumental variables are often used to identify peer effects. This paper shows that instrumenting the ‘peer average outcome’ with ‘peer average characteristics’ requires the researcher to include the instrument at the individual level as an explanatory variable. We highlight the bias that occurs when failing to do this.
format Online
Article
Text
id pubmed-6849846
institution National Center for Biotechnology Information
language English
publishDate 2019
publisher John Wiley and Sons Inc.
record_format MEDLINE/PubMed
spelling pubmed-68498462019-11-15 The Use of Instrumental Variables in Peer Effects Models von Hinke, Stephanie Leckie, George Nicoletti, Cheti Oxf Bull Econ Stat Practitioners' Corner Instrumental variables are often used to identify peer effects. This paper shows that instrumenting the ‘peer average outcome’ with ‘peer average characteristics’ requires the researcher to include the instrument at the individual level as an explanatory variable. We highlight the bias that occurs when failing to do this. John Wiley and Sons Inc. 2019-02-04 2019-10 /pmc/articles/PMC6849846/ /pubmed/31736533 http://dx.doi.org/10.1111/obes.12299 Text en © 2019 The Authors. Oxford Bulletin of Economics and Statistics published by Oxford University and JohnWiley & Sons Ltd. This is an open access article under the terms of the http://creativecommons.org/licenses/by/4.0/ License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
spellingShingle Practitioners' Corner
von Hinke, Stephanie
Leckie, George
Nicoletti, Cheti
The Use of Instrumental Variables in Peer Effects Models
title The Use of Instrumental Variables in Peer Effects Models
title_full The Use of Instrumental Variables in Peer Effects Models
title_fullStr The Use of Instrumental Variables in Peer Effects Models
title_full_unstemmed The Use of Instrumental Variables in Peer Effects Models
title_short The Use of Instrumental Variables in Peer Effects Models
title_sort use of instrumental variables in peer effects models
topic Practitioners' Corner
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6849846/
https://www.ncbi.nlm.nih.gov/pubmed/31736533
http://dx.doi.org/10.1111/obes.12299
work_keys_str_mv AT vonhinkestephanie theuseofinstrumentalvariablesinpeereffectsmodels
AT leckiegeorge theuseofinstrumentalvariablesinpeereffectsmodels
AT nicoletticheti theuseofinstrumentalvariablesinpeereffectsmodels
AT vonhinkestephanie useofinstrumentalvariablesinpeereffectsmodels
AT leckiegeorge useofinstrumentalvariablesinpeereffectsmodels
AT nicoletticheti useofinstrumentalvariablesinpeereffectsmodels

Ejemplares similares