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

Publication: Working/Discussion PaperWU Working Paper

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Abstract

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.
Original languageEnglish
Publication statusPublished - 2019

Publication series

NameDepartment of Economics Working Paper Series
No.292

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 101018 Statistics
  • 502001 Labour market policy
  • 502025 Econometrics
  • 605003 Cultural economics
  • 503006 Educational research
  • 502005 Economics of education

WU Working Paper Series

  • Department of Economics Working Paper Series

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