NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Onur Özgür

Melbourne Business School

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Institutional Affiliation: Melbourne Business School

NBER Working Papers and Publications

September 2019Dynamic Social Interactions and Health Risk Behavior
with Tiziano Arduini, Alberto Bisin, Eleonora Patacchini: w26223
We study risky behavior of adolescents. Concentrating on smoking and alcohol use, we structurally estimate a dynamic social interaction model in the context of students' school networks included in the National Longitudinal Study of Adolescent Health (Add Health). The model allows for forward-looking behavior of agents, addiction effects, and social interactions in the form of preferences for conformity in the social network. We find strong evidence for forward looking dynamics and addiction effects. We also find that social interactions in the estimated dynamic model are quantitatively large. A misspecified static model would fit data substantially worse, while producing a much smaller estimate of the social interaction effect. With the estimated dynamic model, a temporary shock to studen...
 
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