There is substantial empirical evidence showing that peer effects matter in many activities. The workhorse model in empirical work on peer effects is the linear-in-means (LIM) model, whereby it is assumed that agents are linearly affected by the mean action of their peers. We develop a new...

We provide the first empirical application of a new approach proposed by Lee (2007) to estimate peer effects in a linear-in-means model. This approach allows to control for group-level unobservables and to solve the reflection problem. We investigate peer effects in student achievement in...

This paper analyzes data from a novel field experiment designed to test the impact of twodifferent insurance products and a secret saving device on solidarity in risk-sharing groupsamong rural villagers in the Philippines. Risk is simulated by a lottery. Risk-sharing ispossible in solidarity...

We analyze whether the availability of formal insurance products affects informal solidarity transfers in two independent behavioral experiments in the Philippines. The first experiment allows for communication, non-anonymity and unrestricted transfers. The second experiment mimics a laboratory...

This paper analyzes data from a novel field experiment designed to test the impact of two different insurance products and a secret saving device on solidarity in risk-sharing groups among rural villagers in the Philippines. Risk is simulated by a lottery. Risk-sharing is possible in solidarity...

This paper is the first to provide evidence about the relationship between bride price payments and fertility decisions in the African context. Remarkably, the results show that bride price payments reduce fertility pressure, with a woman reducing her number of children by 0.5 at the mean bride...

Between April and July 1994 Rwanda experienced a tremendous wave of inter-ethnic violence that caused at least 500,000 deaths. Combining birth history data drawn from the 2000 Rwanda Demographic and Health Survey with prefecture-level information on the intensity of the conflict, we examine the...

Using data from a randomised experiment in Kenya, we estimate the causal effect of social networks on technology adoption. In this experiment, farmers were invited to information sessions about the use of Tissue Culture Banana (TCB), an in vitro banana cultivation technology. We find that an...

Parents who experience poverty and who want to provide their children with an escape route can be expected to encourage and support their progeny's education. The evidence that Roma parents behave differently is unsettling. In this paper we test empirically an explanation for that behavior. The...

With the use of comparable data from seven West African capitals, we attempt to assess the rationale behind development policies targeting high rates of school enrollment through the prism of allocation of labour and returns to skills across the formal and informal sectors. We find that people...