Peer influence on effort devoted to some activity is often studied using proxy variables when actual effort is unobserved. For instance, in education, academic effort is often proxied by GPA. We propose an alternative approach that circumvents this approximation. Our framework distinguishes...

Peer influence on effort devoted to some activity is often studied using proxy variables when actual effort is unobserved. For instance, in education, academic effort is often proxied by GPA. We propose an alternative approach that circumvents this approximation. Our framework distinguishes...

We explore the asymptotic properties of pairwise stables networks (Jackson and Wolinsky, 1996). Specifically, we want to recover a set of parameters from the individuals' utility functions using the observation of a single pairwise stable network. We develop Pseudo Maximum Likelihood estimator...

We study some recent developments and challenges in the empirics of the effects of social networks. We focus in particular on researchers' ability to make policy recommendations based on a standard linear econometric model. We examine the potential compatibility between this type of econometric...

SUMMARY We provide the first empirical application of a new approach proposed by Lee (Journal of Econometrics 2007; <b>140</b>(2), 333–374) to estimate peer effects in a linear‐in‐means model when individuals interact in groups. Assumingsufficient group size variation, this approach allows to control...

We study how uncertainty and risk aversion affect international agreements to supply global public goods. We consider a benchmark model with homogeneous countries and linear payoffs. When countries directly contribute to a public good, uncertainty tends to lower signatories' efforts but may...