Count Data Models With Heterogeneous Peer Effects Under Rational Expectations

Bibliographic Data

ID21653517
AuthorsAristide Houndetoungan (0009-0003-2733-9362, Laval University Quebec Canada, corresponding author)
Year2026
Volume41
Issue3
Pages295-309
Publication date2026-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Applied Econometrics (JOURNAL)
Journal identifiersISSN: 1099-1255 • E-ISSN: 0883-7252
PublisherWiley (PUBLISHER • GB)
DOI10.1002/jae.70045
OpenAlexW7128066558
LanguageEN
Citations received1
References cited32

This paper develops a peer effect model for count responses under rational expectations. The model accounts for heterogeneity in peer effects across groups based on observed characteristics. Identification is based on the linear model condition that requires the presence of friends of friends who are not direct friends. I show that this identification condition extends to a broad class of nonlinear models. Parameters are estimated using a nested pseudo‐likelihood approach. An empirical application to students' extracurricular participation reveals that females are more responsive to peers than males. An easy‐to‐use R package, CDatanet, is available for implementing the model

Count data · Linear model · Multilevel model · Nonlinear system · Peer effects · Random effects model · Rational expectations · Innovations in Educational Methods · Psychometric Methodologies and Testing · School Choice and Performance

Tools

Open DOIOpen Access