TY  - JOUR
CY  - Chichester‎ ; New York‎ ; Wiley
ID  - publications46478
UR  - http://tse-fr.eu/pub/127551
IS  - n° 3
A1  - Jochmans, Koen
N2  - Identification of peer effects is complicated by the fact that the individuals under study may self-select their peers. Random assignment to peer groups has proven useful to sidestep such a concern. In the absence of a formal randomization mechanism it needs to be argued that assignment is `as good as' random. This paper introduces a simple yet powerful test to do so. We provide theoretical results for this test. As a by-product we equally obtain such results for an approach popularized by Guryan, Kroft and Notowidigdo (2009). These results help to explain why this approach suffers from low power, as has been observed elsewhere. Our approach can equally be used to test for the presence of peer effects in the linear-in-means model without modification.
VL  - vol. 38
TI  - Testing random assignment to peer groups
AV  - public
EP  - 333
Y1  - 2023/04//
PB  - John Wiley & Sons
JF  - Journal of Applied Econometrics
KW  - asymptotic power
KW  - bias
KW  - fixed effects
KW  - peer effects
KW  - random assignment
KW  - test
SN  - 0883-7252
SP  - 321
ER  -