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Author:Glaeser, E.L.
Sacerdote, B.I.
Scheinkman, J.A.
Title:The social multiplier
Journal:Journal of the European Economic Association
2003 : APR-MAY, VOL. 1:2-3, p. 345-353
Index terms:Individual behaviour
Freeterms:Social interaction
Language:eng
Abstract:Aggregated data is often used to make inferences about individual level behavior. If there are social interactions in which one person's actions influence his/her neighbor's incentives or information, then these inferences are inappropriate. The presence or positive social interactions, or strategic complementarities, implies the existence of a social multiplier where aggregate relationships will overstate individual elasticities. A brief model is presented and the size of social multiplier is estimated in three areas: 1) the impact of education on wages, 2) the impact of demographies on crime and 3) group membership among Dartmouth roommates.
SCIMA record nr: 248933
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