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Wiley InterScience | ||
  Review of Economic StudiesVolume 74 Issue 3, Pages 897 - 935 Published Online: 15 Jun 2007 © 2010 The Review of Economic Studies Limited
Abstract | References | Full Text: HTML, PDF (Size: 334K) | Related Articles | Citation Tracking  Measuring Peer Effects on Youth Smoking Behaviour Copyright 2007 The Review of Economic Studies Limited ABSTRACTThis paper examines the role of peer effects in teenagers' smoking behaviour in the U.S.A. I present a random utility model that incorporates complementarity between individual and peer smoking. A Markov process model of smoking interactions between individuals is presented. I estimate the structural parameters of the model using a steady-state distribution that is determined by the Markov process. The empirical results strongly support the presence of positive peer effects. Interestingly, peer interactions are found to be stronger within the same gender than across genders. The same result is found for race. Moreover, a multiplier effect is found. First version received July 2004; final version accepted November 2006 (Eds.) |  |
