This paper discusses the issue of perceptions and their influence on economic processes focusing on corruption perception. The higher the perceived corruption in an organization is, the more probable it is that a person dealing with that organization would offer a bribe, thus supporting...

This chapter focuses on neighborhood effects in housing markets. Households in effect choose neighborhood effects, or more generally social interactions, via their location decisions, which renders them endogenous. Across several classes of models that it examines, it emphasizes how we may...

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 provide two...

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...

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...

This research is an attempt to assess the impact of trust, helpfulness, and fairness on economic growth in Europe. The first part of the paper highlights the concept of social capital and the related concept of trust, while the second part gives an overview of selected research hitherto...

This paper examines inference on social interactions models in the presence of missing data on outcomes. In these models, missing data on outcomes imply an incomplete data problem on both the endogenous variable and the regressors. However, getting a sharp estimate of the partially identified...

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...

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 studies the factors that determine unpaid labour in a voluntary organization, a political party and a trade union. Official data has been taken from Indagine Multiscopo sulla Famiglia, Aspetti della Vita Quotidiana (1997), of the National Institute of Statistics (ISTAT). In...