FROM NATURAL VARIATION TO OPTIMAL POLICY? THE IMPORTANCE OF ENDOGENOUS PEER GROUP FORMATION

We take cohorts of entering freshmen at the United States Air Force Academy and assign half to peer groups designed to maximize the academic performance of the lowest ability students. Our assignment algorithm uses nonlinear peer effects estimates from the historical pre-treatment data, in which stu...

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Veröffentlicht in:Econometrica 2013-05, Vol.81 (3), p.855-882
Hauptverfasser: Carrell, Scott E., Sacerdote, Bruce I., West, James E.
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container_title Econometrica
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creator Carrell, Scott E.
Sacerdote, Bruce I.
West, James E.
description We take cohorts of entering freshmen at the United States Air Force Academy and assign half to peer groups designed to maximize the academic performance of the lowest ability students. Our assignment algorithm uses nonlinear peer effects estimates from the historical pre-treatment data, in which students were randomly assigned to peer groups. We find a negative and significant treatment effect for the students we intended to help. We provide evidence that within our "optimally" designed peer groups, students avoided the peers with whom we intended them to interact and instead formed more homogeneous subgroups. These results illustrate how policies that manipulate peer groups for a desired social outcome can be confounded by changes in the endogenous patterns of social interactions within the group.
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source Wiley Online Library Journals Frontfile Complete; JSTOR Mathematics & Statistics; Jstor Complete Legacy
subjects Academic achievement
Coefficients
Cohort analysis
Control groups
Fractions
Grade point average
Group dynamics
Group interaction
homophily
Mathematical variables
Optimization algorithms
P values
Peer effects
Peer groups
Peer relationships
Social interaction
social network formation
Social psychology
Standard error
Standardized tests
Students
Studies
U.S.A
title FROM NATURAL VARIATION TO OPTIMAL POLICY? THE IMPORTANCE OF ENDOGENOUS PEER GROUP FORMATION
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