Endogenous Shocks in Social Networks: Exam Failures and Friends' Future Performance

Marchenko, Maria (2019) Endogenous Shocks in Social Networks: Exam Failures and Friends' Future Performance. Department of Economics Working Paper Series, 292. WU Vienna University of Economics and Business, Vienna.


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Exam failures of the students in a specific network may influence not only the future performance of the student but also all students from their friendship networks, affecting the overall cohort's performance. Therefore, it is crucial to understand how the whole network responses to failure. The difficulty of such analysis is incorporated in the probability of the failures being highly endogenous. In this paper, I am applying the novel identification and estimation approach to deal with such endogeneity. I am exploring the dynamic data on the students' networks in HSE, Nizhniy Novgorod. The results suggest that, on average, the exam failure of the friend have a negative effect on future performance.

Item Type: Paper
Keywords: social networks, peer effects, exam failures, shock spillover
Classification Codes: JEL C21, C49, I21
Divisions: Departments > Volkswirtschaft
Depositing User: Claudia Tering-Raunig
Date Deposited: 14 Aug 2019 09:26
Last Modified: 22 Oct 2019 00:41
URI: https://epub.wu.ac.at/id/eprint/7100


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