Role Of Peer Effects Research Articles

Knowledge flows in Data Envelopment Analysis. The role of peer effects

Although the benchmarking literature has amassed both theoretical developments and empirical evidence on the performance of DMUs, the void related to the learning perspective of benchmarking remains to be filled. Further required methodological and empirical justifications aiming to fill this gap, are presented in this paper. Specifically, the mechanisms of knowledge transfer among the examined entities and the identification of the most influential source of learning require further investigation. We introduce a novel heuristic algorithm based on the Peer Removal to Improve Mean Efficiency in a Data Envelopment Analysis context to explore knowledge transfer within a benchmarking set. Based on sequential re-modifications of the technology following the removal of knowledge transmitters, a taxonomy arises including the role models, the knowledge receivers and the minimum efficiency DMU. Knowledge transfer is quantified by the calculation of the learning trace, following the removal of knowledge transmitters. We employ the most productive scale size to identify the most influential unit in terms of knowledge contribution. Findings from an illustrative example and a case study on European regions indicate that knowledge flows are not equally strong across benchmarking rounds.

Peer effects of local students on the human capital of migrant children in middle schools: Evidence from China

The role of peer effects in children's human capital accumulation has attracted increased amounts of attention. Using data from a nationally representative survey of Chinese middle school students, this paper exploits random student-classroom assignment as a quasi-natural experiment to identify the peer effects of local students on the human capital of migrant children in Chinese middle schools. The results indicate that the peer effects of local students significantly improve the human capital of migrant children, including academic performance, cognitive abilities and non-cognitive abilities. Moreover, these peer effects can be further explained by improved parent-child relationships and parental expectations, increased student effort and expectations, and optimized teachers' teaching and school climate. Additionally, the peer effects from local students varies with migrant children's gender, Hukou, number of siblings and grade. Our research contributes to complementing the research field regarding peer effects and provides a new policy-oriented direction for the development of migrant children's human capital.

Decision behaviour and performance in a paired newsvendor: The role of peer effects

The pull-to-center (PTC) effect refers to newsvendors’ behaviour of under-/overordering in high-/low-profit conditions. This paper examines the impact of peer effects on newsvendors’ decision behaviour and performance through laboratory experiments. We consider a paired newsvendor setting where subjects are randomly divided into pairs and are informed of their peers’ decisions and performance when they make order decisions, where peer effects arise. We find that subjects are unintentionally influenced by and intentionally learn from their peers’ decisions and ultimately manifest a peer-chasing behaviour (i.e., to chase peers’ decisions). Comparing with the single newsvendor setting, we further demonstrate the impact of the peer effect: (i) the peer-chasing behaviour can mitigate the PTC effect and hence improve the profit; (ii) the peer-chasing behaviour can counter the adverse effect of the demand-chasing heuristic; and (iii) the peer-chasing behaviour can theoretically reduce the variance of subjects’ order quantities and lead to a profit improvement. This paper contributes to the literature by first identifying the peer-chasing behaviour(s) and introducing a new debiasing strategy to mitigate the PTC effect via peer effects. We also propose an approach to link the level and adjustment behaviours, revealing how various adjustment behaviours affect the corresponding level behaviour.

Social threshold regression

This paper develops a threshold social interaction model which introduces group-specific endogenous effects as well as contextual effects into a conventional spatial Durbin model. We propose a two-step GMM estimator for the threshold and regression parameters, derive asymptotic theory, and provide bootstrap inference. Finally, we assess the performance of our methods using a Monte Carlo simulation and provide an empirical application on the role of peer effects on student academic achievement using Add Health data.

From energy consumers to prosumers: the role of peer effects in the diffusion of residential microgeneration technology

In this work we study incentives and determinants which spur energy consumers to invest in a new technology, focusing on the UK residential adoption of microgeneration technology which uses solar photovoltaic systems. In particular, we focus on how the presence at the regional level of community energy organizations promotes new installations of solar panels among neighbouring residential consumers. We make use of a panel dataset based on county level data for the years 2011–2016, aggregated to NUTS-3 regions. We employ a set of spatial econometrics models, i.e., Spatial Autoregressive Model, Spatial Error Model and Spatial Durbin Model, to provide insights on the role of peer effects in the diffusion of the technology, the mechanisms through which peer effects can occur and how household adoption of new technology is affected. In our results we find evidence that local authorities and local energy communities play an important role in spreading information and trust towards a new technology among households resident in the same region.

Role of Peer Effects in China's Energy Transition: Evidence from Rural Beijing.

China's efforts to encourage energy transition from coal to cleaner methods of space heating have gained great achievement. However, not all progress met expectations; that is, some households still rely on solid fuel. Sociocultural factors provide one plausible explanation. While existing studies have examined and quantified the socioeconomic factors, little attention has been paid to the peer effects that are often critical in the Chinese cultural context. This study first presents household energy consumption patterns using household-level data on the coal-switching program in rural Beijing. It shows that the coal-switching program did not completely eliminate the use of solid fuel for space heating as expected. To explore the underlying determinants, we apply an econometric model of the forces driving energy transition, focusing on peer effects. The results confirm that the coal-switching program significantly reduces the use of solid fuel. Moreover, it reveals that the peer effect, measured by the average village-level solid fuel use rate, matters for households' fuel choices. We also find that the peer effect varies with different income levels and policies. These findings provide new evidence and insights for future policy design.

Peer effects in management forecast precision decision: evidence from a novel text-based network

ABSTRACT This paper examines the peer effects in strategic disclosure decisions. We exploit the heterogeneous and intransitive nature of peer networks by mapping out peers using MD&A textual comparability to identify such effects. Using recent developed spatial econometric techniques, we find a strong positive peer effect in the forecast precision decisions, which is consistent with social learning assumption. After mitigating the endogenous problems with two instrumental variables and excluding the geographic factors, our conclusion is still valid. Overall, our result shed light on the role of peer effects in the formation of voluntary disclosure.

Personality traits associated with Healthy Diet and Obesity: A systematic review

Abstract Objective This study aimed to examine the association between personality traits and either dietary behaviour or weight-related outcomes. Methods A systematic review guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses Statement was conducted through Scopus, PubMed and PsychInfo databases. Studies were included if they used a facet of personality that we were confidently able to map to a Big Five dimension. Results A total of 21 studies were eligible for inclusion. Most studies that reported a measure of association found a result that was statistically insignificant at the 5% level. In studies where the result was statistically significant, Extraversion, Openness, Agreeableness and Conscientiousness were almost always positively associated with healthy dietary behaviour and negatively associated with fat consumption, eating problems, obesity and measures of unhealthy weight across all the populations. Four studies found statistically significant results in the opposite direction. Neuroticism was associated with unhealthy behaviours or weight problems. Conclusions and Implications The Big-Five-model is an adequate instrument to measure the relationship between personality and diet. Healthy dietary behaviour tends to be associated with more pro-social personality characteristics, whereas poor weight control could be linked with Neuroticism. These results suggest there may be some benefit from using psychological traits to personalise interventions aimed at improving nutrition. Key messages There may be some benefit from using psychological traits to personalise interventions aimed at improving nutrition. Another interesting line of research may take account of the role of peer-effects and role-models in promoting healthy or unhealthy behaviour across social networks.

Increased Transparency in Procurement: The Role of Peer Effects

Motivated by recent initiatives to increase transparency in procurement, we study the effects of disclosing information about previous purchases in a setting where an organization delegates its purchasing decisions to its employees. When employees can use their own discretion, which may be influenced by personal preferences, to select a supplier, the incentives of the employees and the organization may be misaligned. Disclosing information about previous purchasing decisions made by other employees can reduce or exacerbate this misalignment, as peer effects may come into play. To understand the effects of transparency, we introduce a theoretical model that compares employees’ actions in two settings: one where employees cannot observe each other’s choices and one where they can observe the decision previously made by a peer before making their own. Two behavioral assumptions are central to our model: that employees are heterogeneous in their reciprocity toward their employer, and that they experience peer effects in the form of income inequality aversion toward their peer. As a result, our model predicts the existence of negative spillovers as a reciprocal employee is more likely to choose the expensive supplier (which gives the employee a personal reward) when the employee observes that a peer did so. A laboratory experiment confirms the existence of negative spillovers and the main behavioral mechanisms described in our model. A surprising result not predicted by our theory is that employees whose decisions are observed by their peers are less likely to choose the expensive supplier than the employees in the no-transparency case. We show that observed employees’ preferences for compliance with the social norm of appropriate purchasing behavior explain our data well. This paper was accepted by Yuval Victor Martinez de Albeniz, operations management.

Regulating the Urban Commons: A Romanian Case Study of Improving Building Facades

This paper examines the effect of build environment regulations for facades emergency repairs and embellishment, as implemented by the city of Cluj-Napoca, the second largest municipality in Romania. The scope was to identify to what extent the over taxation measure was efficient in generating compliant behaviour and what secondary effects it may have generated in people’s attitude towards the local authorities. We conducted structured interviews with 25 homeowners targeted by the policy. The qualitative analysis uncovers structural issues on how the policy was implemented and communicated to the population. It further acknowledges difficulties in managing mixed property and collective actions. We interpret the findings as a first step towards building a more comprehensive research framework focused also on included behavioural insights, as captured by our recommendations. Namely, they illustrate that homeowners were critical about the measure, both in its rationale and its implementation, and were unable to act upon a cost-benefit analysis given the ambiguous available information. The findings further acknowledge difficulties in managing mixed property and collective actions, but they also hint favourably towards the role of peer effects, expressed here as compliant neighbours’ behaviour. We interpret the results of this exploratory case study as a first step towards building a more comprehensive approach to serve as a toolkit in examining the development of innovative local policies in post-communist environments, through a combined research framework including also the significant contribution of behavioural insights, next to the traditional rational actor theories. Naturally, the usual limitations of the method also apply to our study, in the sense of non-generalizable conclusions. This fuels up the need for further research on similar regional and urban challenges in an extended multiple-case study scheme.

Judicial arbitration of unfair dismissal cases: The role of peer effects

The paper analyses how peer effects affect judicial decisions over dismissal disputes in Australian labour courts. Using a panel of judges and data over 2000 unfair dismissal decisions we first test for selection effects and for randomized matching of judges to cases. We then use spatial econometrics methods to test whether individual judges’ decisions depend on the behaviour and/or characteristics of their peer group. We do not find evidence of endogenous (behavioural) peer effects, but we find significant exogenous (characteristics) peer effects.

Behind the scenes: Why are energy efficient home appliances such a hard sell?

This paper wishes to add to the rich literature of studies exploring the reasons behind the energy efficiency gap. To this direction, it presents the results of a stated preference survey conducted on a representative sample of Greek households via computer-assisted web interviewing (CAWI) in the context of the “Consumer Energy Efficiency Decision making (CONSEED)” project. The survey was designed and conducted so as to reach every type of household and gather information on the factors influencing households’ energy efficiency choices. The emphasis was given on certain issues that previous studies identified as needing further research, such as the impact of EU labelling scheme on consumers’ decision-making, the connection between pro-environmental behaviour and willingness to invest in more energy-efficient appliances and the role of peer effects, misinformation about current electricity prices and imperfect understanding of energy operating costs on the energy efficiency gap. The findings of the survey are not an end-to-itself but a vehicle for behavioural research in energy efficient decisions. The data collected and analysed can be used to populate theoretical models regarding energy efficiency gap and determine the degree to which each factor contributes to the phenomenon. Moreover, they could help decision-makers in better understand the energy paradox, and, thus, could contribute to crafting better public policy responses that would maximise private and social benefits associated with the adoption of energy-efficient choices.

The role of peer effects in firms’ usage of R&D tax exemptions

Survey evidence suggests that firms are insufficiently aware of newly introduced R&D support measures due to the complexity of the public support landscape. As a result, adoption is slow and incomplete, which implies that eligible firms leave money on the table. We hypothesize that a key coping mechanism involves firms relying on their peers’ behaviour to inform their own adoption decision. We test this hypothesis by analysing firms' first use of a newly-introduced R&D tax exemption scheme in Belgium. We identify endogenous peer effects in industry- and location-based peer groups by exploiting the intransitivity in firms’ networks as well as variation in peer group size. The results show that firms’ decisions to use R&D tax exemptions are influenced by the choices of their peers, primarily in the time window immediately following their introduction. The findings suggest that the efficacy of R&D policy can be improved by accounting for the structure of firm networks in the communication of new support initiatives.

Increased Transparency in Procurement: The Role of Peer-Effects

Motivated by recent initiatives to increase transparency in procurement, we study the effects of disclosing information about previous purchases in a setting where an organization delegates its purchasing decisions to its employees. When employees can use their own discretion —which may be influenced by personal preferences— to select a supplier, the incentives of the employees and the organization may be misaligned. Disclosing information about previous purchasing decisions made by other employees can reduce or exacerbate his misalignment, as peer effects may come into play. To understand the effects of transparency, we introduce a theoretical model that compares employees’ actions in a setting where they cannot observe each other’s choices, to a setting where they can observe the decision previously made by a peer before making their own. Two behavioral considerations are central to our model: that employees are heterogeneous in their reciprocity towards their employer, and that they experience peer effects in the form of income inequality aversion towards their peer. As a result, our model predicts the existence of negative spillovers as a reciprocal employee is more likely to choose the expensive supplier (which gives him a personal reward) when he observes that a peer did so. A laboratory experiment confirms the existence of negative spillovers and the main behavioral mechanisms described in our model. A surprising result not predicted by our theory, is that employees whose decisions are observed by their peers are less likely to choose the expensive supplier than the employees in the no transparency case. We show that observed employees’ preferences for compliance with the social norm of “appropriate purchasing behavior” explain our data well.

The Relationship between Increasing Enrolment and Student Academic Achievement in Higher Education

ABSTRACTThis article reports on a study of which the main aim was to provide insight into whether increasing the enrolment of large classes influences student academic achievement at the University of KwaZulu-Natal (UKZN), City, South Africa. The massification of higher education has led to greater numbers of students being enrolled in contact programmes. there is a widely accepted inverse relationship between class size and academic achievement for small class sizes and it would be speculative to extend the same understanding to larger class sizes. It is within this context that a cross-sectional study was conducted during which student achievement was analysed against increasing the enrolment of already large classes, in selected undergraduate modules at UKZN over a period of four years. convenience sampling and judgemental sampling were used to select modules in the discipline of Supply Chain Management (SCM). The findings revealed that while the average class size increased significantly, the pass rates remained constant. Based on the study findings, it was concluded that an increase in the enrolment of already large classes does not influence student academic achievement. It is recommended that the study be replicated in other schools and faculties where disciplines have experienced similar increases in the enrolment of large classes, thereby presenting an opportunity to either validate or dispute the study results. It is further recommended that the role of peer effects be subjected to further study to establish whether they have any influence on academic achievement. These results are expected to encourage future debate on how faculties manage increasing student enrolments at higher education institutions.

The role of peer effects and the built environment on individual travel behavior

While urban planners and transportation geographers have long emphasized the importance of social influences on individual travel behavior, many challenges remain to bridge the gap between complex conceptual frameworks and operational behavioral models. Improving the ability of models to forecast activity-travel behavior can provide greater insights into urban planning issues. This paper proposes a new model framework by evaluating how individual travel behavior is influenced by inter- and intra-household interactions. The built environment, land-use mix, and social interactions influence household member choices among different transport modes. We propose a spatial multivariate Tobit specification that allows each individual to face a set of potential destinations and transport modes and takes into consideration the travel behavior of other household members and nearby neighbors. Using the Greater Cincinnati Household Travel Survey, we analyzed more than 37,000 trips made by 1968 individuals located in Hamilton County in Cincinnati, Ohio. Results reveal that social influences and the built environment have a strong impact on the willingness to walk and to cycle.

The gender gap in entrepreneurship – The role of peer effects

In virtually all industrialized countries, women are underrepresented in entrepreneurship, and the gender gap exhibits a remarkable persistence. We examine one particular source of persistence, namely the prevalence of gendered peer influences. We study how early career entrepreneurship is affected by existing entrepreneurship among neighbors, family members, and recent schoolmates. Based on an instrumental variables strategy, we identify strong and heavily gendered peer effects. While men are more influenced by other men, women are more influenced by other women. We estimate that differences between male and female peer groups explain approximately half of the gender gap in early career entrepreneurship.

English Language Learner Classmates and the Classroom Social Skills of Students with Disabilities

Background/Context Though the development of social skills in kindergarten is critical, a research gap exists in how the context of the general education classroom may influence the social skills outcomes of students with disabilities: None have considered the role of peer effects in this domain. This gap is critical to address, as multiple high-needs groups are increasingly present in the same general education classroom settings. Purpose/Objective This study asks two key research questions: (1) In kindergarten, to what extent do the classroom social skills outcomes of children with disabilities differ based on the number of ELL classmates? (2) In kindergarten, to what extent do the classroom social skills outcomes of ELL students differ based on the number of classmates with disabilities? Population/Participants The data are sourced from the Early Childhood Longitudinal Study-Kindergarten Class (ECLS-K), which is a nationally representative sample of students, teachers, and schools. Information was first collected from kindergartners (as well as parents, teachers, and school administrators) from U.S. kindergarten programs. This study utilizes data collected at the fall and spring of kindergarten. Research Design This study combines secondary data analyses and quasi-experimental methods. There are three social skills outcomes: (1) approaches to learning, (2) interpersonal skills, and (3) self control. The study begins with a baseline, linear regression model. To address issues pertaining to omitted variable bias, the study employs multilevel fixed effects modeling. Findings The coefficients indicate that students with disabilities tend to have improved social skills with an increase in the number of ELL classmates. The effects remain significant even after accounting for multiple omitted variable biases. Notably, the reverse relationship does not hold: The number of classmates with disabilities has no significant influence on the outcomes of ELL students. Conclusions/Recommendations This research offers more in-depth insight into how the classroom context and the effects of classmates may have a unique relationship for specific high-needs groups such as students with disabilities—a strand of research in this area that is often overlooked. School practices can thus be guided by determining not simply if one group of students performs better or worse on average, but rather by asking, better or worse for whom in particular?

Do Peer Effects Matter for Explaining Corporate Board Structures?

This article examines role of peer effects in determining corporate board structures. We use differences in new guidelines by NYSE and NASDAQ post Sarbanes-Oxley to construct a novel instrument to estimate our peer effects model. The preliminary results presented in this work suggest a strong presence of peer effects in determining board structure and independence of its subcommittees but not overall board independence. The results suggest that one percentage point change in average peer board measure leads to a change of 0.5 percentage points or more in the same direction depending on the board structure measure in question.

Broader versus closer social interactions in smoking

In this paper, we examine the importance of two different peer effects as determinants in the adolescent’s decision whether or not to smoke. One is measured at the class level and the other reflects the smoking behaviour of the adolescent’s best friends. A nationally representative wave of Spanish data, collected in different state and private centres of secondary education and vocational training (14–18 years), and several linear probability models are used to estimate the role of peer effects. We find that a 10 % increase in the proportion of classmates is associated with a 3.6 points increment in the probability of smoking. Similarly, if the smoker’s friends go from “only some” to “the majority”, the probability of smoking increases by 39 points. Although both peer effects are significant if introduced separately, the class peer variable is not significant once the closer peer effect is introduced. Our work provides evidence to support the hypothesis that peer effects are important determinants of smoking among adolescents. This has implications for policy-makers, since the existence of peer effects would amplify the effects of interventions.