• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Empirical framework
      • Identification of social interactions using observational data on ‘natural experiments’
      • Peer effects in classrooms and schools
      • Estimation of social interactions in experimental settings
      • Identification of social interactions with self-selection to groups and sorting
      • Conclusions
    • See Also
    • Bibliography
    • How to cite this article

social interactions (empirics)

Yannis M. Ioannides
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

Empirical studies of social interactions address a multitude of definitional, econometric and measurement issues associated with the role of interpersonal and social group influences in economic decisions. Applications range from studies of crime patterns, neighbourhood influences on upbringing and conformist behaviour, mutual influences among classmates and keeping up with roommates in colleges regarding academic and social activities, to herding and to learning about social services. The article reviews several instances of successful identification of effects emanating from others’ behaviour as distinct from characteristics of others. Data-sets with increasingly rich contextual information will allow estimation of complex models of economic decisions.
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Keywords

congestion; contextual effects; correlated effects; endogenous effects; herding; identification; information sharing; innovation; laboratory experiments; linear models; multiplier effects; natural experiments; neighbourhood effects; neighbours; partial identification; pecuniary externalities; peer effects; rational expectations; reflection problem; self-selection; social capital; social equilibrium; social interactions; social multipliers; social norms; unobservables; well-being
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Article

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How to cite this article

Ioannides, Yannis M. "social interactions (empirics)." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 24 May 2013 <http://www.dictionaryofeconomics.com/article?id=pde2008_E000256> doi:10.1057/9780230226203.1557

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