JESS Seminar: Endogenous Shocks in Social Networks: Exam Failures and Friends’ Future PerformanceISER Internal Seminars

Individual exam failures happening to one of the students in a specific network, influence not only the future performance of students experiencing the failure but also all students from their friendship networks. Therefore, it is crucial to understand the behaviour of the whole network in response to the failure, when discussing the overall effect of the failure. The difficulty of such analysis is incorporated in the probability of the failures being highly endogenous. The logic used in the peer effect literature is adopted to develop the dynamic model and accounts for the endogeneity of the shock. The model allows us to predict the endogenous part of the friends’ exam failure and use the unexpected component to estimate the effect of pure shock on the changes in a student’s average grade. The identification conditions for the effect are derived and the consistent estimation procedure is proposed. The model has been applied to the dynamic network data on the students at HSE, Nizhniy Novgorod. The results suggest that, on average, the exam failure of the friend have a negative effect on future performance.

Presented by:

Maria Marchenko, University of Vienna (MiSoC, visiting Angus and Emilia)

Date & time:

2 May 2018 12:00 pm - 2 May 2018 13:00 pm


2N2.4.16 - ISER Large Seminar Room

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