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Figure 7A. Effect of a Direct Utility from Associating with People with the High Characteristic. 1 1 0.5 0.5 X A for Y L , X L 0 -0.5 X A for Y L , X H 0 -0.5 -1 0 0.2 0.4 0.6 0.8 1 Share of Group with High Characteristic -1 0 0.2 0.4 0.6 0.8 1 Share of Group with High Characteristic 1 1 0.5 0.5 X A for Y H , X L 0 -0.5 X A for Y H , X H 0 -0.5 -1 0 0.2 0.4 0.6 0.8 1 Share of Group with High Characteristic -1 0 0.2 0.4 0.6 0.8 1 Share of Group with High Characteristic Note. All parameters are as in Figure 6 except ⎡0 Φ = ⎢ ⎣0 0⎤ 0 ⎥ ⎦ (solid curves) and ⎡0 Φ = ⎢ ⎣1 0⎤ 0 ⎥ (dashed curves). ⎦ 45
Figure 7B. Effect of a Direct Utility from Associating with People with the High Characteristic. 1 1 Y A for Y L , (X L and X H ) 0.5 0 -0.5 Y A for Y H , (X L and X H ) 0.5 0 -0.5 -1 0 0.2 0.4 0.6 0.8 1 Share of Group taking the High Action -1 0 0.2 0.4 0.6 0.8 1 Share of Group taking the High Action 1 1 Share of Group with Y High 0.8 0.6 0.4 0.2 Share with Y High, for X L , X H 0.8 0.6 0.4 0.2 0 0 0.2 0.4 0.6 0.8 1 Share of Group with High Characteristic 0 0 0.2 0.4 0.6 0.8 1 Share of Group with High Characteristic Note. All parameters are as in Figure 6 except ⎡0 Φ = ⎢ ⎣0 0⎤ 0 ⎥ ⎦ (solid curves) and ⎡0 Φ = ⎢ ⎣1 0⎤ 0 ⎥ (dashed curves). ⎦ 46
Page 1 and 2: Social Interactions and Endogenous
Page 3 and 4: members of his macro-group. We also
Page 5 and 6: theoretical analyses allow for vari
Page 7 and 8: simplify notation, it is convenient
Page 9 and 10: ∂U ∂π A i| i x ⎞ ⎜ ⎛ ′
Page 11 and 12: Glaeser, Sacerdote, and Scheinkman
Page 13 and 14: section focuses on a binary action,
Page 15 and 16: normally distributed. In this case,
Page 17 and 18: of the effects of macro-groups beca
Page 19 and 20: the low action, but lower for peopl
Page 21 and 22: which can generate multipliers - as
Page 23 and 24: surveyed friends being in the perso
Page 25 and 26: ehavior and those of his associates
Page 27 and 28: ( ) ( ) A 0 G 0 G 2 0 G 3 1 G 1 G 2
Page 29 and 30: In our second step, we use the coef
Page 31 and 32: people with high (predicted) behavi
Page 33 and 34: VII. Conclusion and Implications We
Page 35 and 36: Brock, William A. and Steven N. Dur
Page 37 and 38: Graham, Bryan S. 2005. “Identifyi
Page 39 and 40: Sacerdote, Bruce. “Peer Effects w
Page 41 and 42: Figure 2. The Effect of Increasing
Page 43 and 44: Figure 4. The Effect of Group Compo
Page 45: Figure 6. Effect of a Direct Utilit
Page 49 and 50: Table 1. Descriptive Statistics. Ow
Page 51 and 52: The neighborhood characteristics ar
Page 53 and 54: School-Grade School-Grade Table 4.
Page 55 and 56: Table 6. Sorting on Behaviors: Asso
Page 57 and 58: Table 8. Two Stage Least Squares Es
Page 59: Appendix Table 1. Variable Descript

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