Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/232919 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14167
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We address the estimation of sample selection and endogenous treatment models with social interactions. To model the interaction between individuals in an internally consistent matter we employ a game theoretic approach based on the use of a discrete Bayesian game. We overcome the substantial computational burden this introduces through a sequential version of the nested fixed point algorithm. We describe how our methodology can be applied to a large class of commonly employed models. We employ our approach to examine the impact of an individual's frequency of exercise on her level of self esteem in a setting where an individual's exercise frequency is treated as endogenous and is potentially influenced by her belief of her friends' exercise frequency.
Subjects: 
endogenous treatment
sample selection
social interactions
sequential estimation
exercise
self-esteem
JEL: 
C31
C34
C57
Z2
Document Type: 
Working Paper

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