Identification and estimation of econometric models with group interactions, contextual factors and fixed effects

Peer Effects on Undergraduate Business Student Performance

“…2009;Hoxby;2000), fixed effects (Vigdor and Nechyba, 2004;Hanushek et al,. 2003) or network studies (Bramoulle et al, 2010;Boucher et al, 2010;De Giorgi et al, 2010;Lee, 2007). This paper belongs to the latter category.…”

“…Manski (1993) outlines the problem of identification in the literature as the ability of researchers to separate peer effects from endogenous, exogenous or correlated effects. 1 Recently, Lee (2007) employing a network interaction strategy shows that with groups of moderate size and sufficient size variation identification can be achieved. A number of recent papers have built on Lee's (2007) work (Bramoulle et al, 2010;Boucher et al, 2010) to disentangle endogenous effects from correlated effects.…”

“…1 Recently, Lee (2007) employing a network interaction strategy shows that with groups of moderate size and sufficient size variation identification can be achieved. A number of recent papers have built on Lee's (2007) work (Bramoulle et al, 2010;Boucher et al, 2010) to disentangle endogenous effects from correlated effects. The use of group size variation has however been used in the literature with mixed results in determining peer effect significance (Ammermueller and Pischke, 2009;Hoxby, 2000).…”

Returns to scale and curvature in the presence of spillovers: evidence from European countries

“…1 resulting in what is widely referred to as the Manski (1993) model, where is the spatial error parameter, the parameters would not be identi…ed. Lee (2007) shows, however, that the parameters of the Manski model are identi…ed if the dependent variable and the independent variables are pre-multiplied by a spatial weights matrix which di¤ers from that which is used to construct the spatial error term. This would create quite a large number of possible combinations of spatial weights matrices so this was not a line of enquiry that we pursued.…”

Firm growth in multinational corporate groups

“…We estimate the model for national and multinational corporate groups (MNEs) using a recently introduced instrumental variable estimation procedure for peer group effects developed by Lee (2007). In our data for corporate groups the observation of fast growing young firms and slow growing old firms disappears if interdependence of firm performance within corporation networks is introduced.…”