eprintid: 46478 rev_number: 25 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/04/64/78 datestamp: 2022-12-13 09:41:51 lastmod: 2024-03-18 15:48:22 status_changed: 2024-03-18 15:48:22 type: article metadata_visibility: show creators_name: Jochmans, Koen creators_id: koen.jochmans@tse-fr.eu creators_idrefppn: 175871108 creators_affiliation: Toulouse School of Economics ; University of Toulouse Capitole creators_halaffid: 1002422 title: Testing random assignment to peer groups ispublished: pub subjects: subjects_ECO abstract: 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. date: 2023-04 date_type: published publisher: John Wiley & Sons id_number: 10.1002/jae.2953 official_url: http://tse-fr.eu/pub/127551 faculty: tse divisions: tse keywords: asymptotic power keywords: bias keywords: fixed effects keywords: peer effects keywords: random assignment keywords: test language: en has_fulltext: TRUE doi: 10.1002/jae.2953 subjectsJEL: JEL_C12 subjectsJEL: JEL_C21 view_date_year: 2023 full_text_status: public publication: Journal of Applied Econometrics volume: vol. 38 number: n° 3 place_of_pub: Chichester‎ ; New York‎ ; Wiley pagerange: 321-333 refereed: TRUE issn: 0883-7252 oai_identifier: oai:tse-fr.eu:127551 harvester_local_overwrite: issn harvester_local_overwrite: pending harvester_local_overwrite: creators_idrefppn harvester_local_overwrite: abstract harvester_local_overwrite: publisher harvester_local_overwrite: creators_id harvester_local_overwrite: creators_affiliation harvester_local_overwrite: creators_halaffid harvester_local_overwrite: ispublished harvester_local_overwrite: date harvester_local_overwrite: number harvester_local_overwrite: volume harvester_local_overwrite: pagerange harvester_local_overwrite: hal_id harvester_local_overwrite: hal_version harvester_local_overwrite: hal_url harvester_local_overwrite: hal_passwd harvester_local_overwrite: title harvester_local_overwrite: place_of_pub oai_lastmod: 2024-03-13T13:02:49Z oai_set: tse site: ut1 hal_id: hal-04077423 hal_passwd: bxfkce hal_version: 1 hal_url: https://hal.science/hal-04077423 citation: Jochmans, Koen (2023) Testing random assignment to peer groups. Journal of Applied Econometrics, vol. 38 (n° 3). pp. 321-333. document_url: https://publications.ut-capitole.fr/id/eprint/46478/1/wp_tse_1270.pdf