Self-Control and Peer Groups: An Empirical Analysis

39 Pages Posted: 10 Oct 2016

See all articles by Marco Battaglini

Marco Battaglini

Cornell University

Carlos Diaz

Syracuse University

Eleonora Patacchini

Einaudi Institute for Economics and Finance (EIEF) ; IZA Institute of Labor Economics

Date Written: October 2016

Abstract

We exploit the exogenous variation in peer groups generated by high school to college transitions to study the theoretical predictions of Battaglini, Benabou and Tirole's (2005) model of self-control in peer groups. We find evidence consistent with the two key predictions of this theory regarding the relationship between an agent's expected self-control problems and the size and composition of his or her social circles: (i) students embedded in social circles have more self-control than those who are alone and their self-control is increasing in the size of their social group; (ii) students' self-control is, however, a non-monotonic hump-shaped function of the average self-control of their friends.

Keywords: peer effects, Self-Control

JEL Classification: C31, D71, D85, I21, Z13

Suggested Citation

Battaglini, Marco and Diaz, Carlos and Patacchini, Eleonora, Self-Control and Peer Groups: An Empirical Analysis (October 2016). CEPR Discussion Paper No. DP11563, Available at SSRN: https://ssrn.com/abstract=2850405

Marco Battaglini (Contact Author)

Cornell University ( email )

Ithaca, NY 14853
United States

Carlos Diaz

Syracuse University ( email )

900 S. Crouse Avenue
Syracuse, NY 13244-2130
United States

Eleonora Patacchini

Einaudi Institute for Economics and Finance (EIEF) ( email )

Via Due Macelli, 73
Rome, 00187
Italy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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