We analyse an economy where heterogeneous agents are partitioned in communities and individual human capital accumulation, the source of growth, is the joint result of private investment in education, public expenditure and externalities within a community. We characterize the long-run growth...

This paper focuses on mechanisms of “peer interactions” among native and non-native students. We present a theoretical framework based on Lazear (2001) education production model and on the “sub-cultural” sociological theory and we test the theoretical predictions exploiting a dataset of...

We model the decisions of young individuals to stay in school or drop-out and engage in criminal activities. We build on the literature on human capital and crime engagement and use the framework of Banerjee (1993) that assumes that the information needed to engage in crime arrives in the form...

This paper provides evidence on the long run relationship between European settlers presence and education levels in Algeria. To correct for endogenous sorting of settlers (and natives) into regions I rely on the fact that proximity to the Mediteranean coast determined the timing of conquest and...

Family members tend to have similar labor market outcomes, but measuring the contribution of behavioral spillovers is difficult. To identify spillovers between brothers, we exploit Denmark's largest random assignment of young men to 8 months of military service where service status of brothers...

The influence of peers could play an important role in the take up of social programs. However, estimating peer effects has proven challenging given the problems of reflection, correlated unobservables, and endogenous group membership. We overcome these identification issues in the context of...

Family members tend to have similar labor market outcomes, but measuring the contribution of behavioral spillovers is difficult. To identify spillovers between brothers, we exploit Denmark's largest random assignment - of young men to 8 months of military service - where service status of...

I use a randomised conditional cash transfer program from Indonesia to provide evidence on peer effects in consumption of poor households. I combine this with consumption visibility data from Indonesia to examine whether peer effects in consumption differ by a good’s visibility. In line with a...

This paper provides the first estimates of tobacco price elasticity for adults in Canada's Aboriginal communities, distinguishing between two price effects: the direct effect, reflecting individual reaction to a price change, and the indirect effect, whereby price influences the individual by...

This paper identifies neighbourhood effects in consumption using the randomized nature of the Progresa programme. Recent studies establish that the programme affects the consumption of both eligible and neighbouring ineligible households but the underlying mechanism of the spillovers is not...