Boucher, Vincent; Bramoullé, Yann; Djebbari, Habiba; … - Vancouver School of Economics - 2010
We provide the first empirical application of a new approach proposed by Lee (2007) to estimate peer effects in a linear-in-means model. The approach allows to control for group-level unobservables and to solve the reflection problem, without imposing ad hoc exclusion restrictions or requiring...