The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Social Interactions (Empirics)

  • Yannis M. Ioannides
Reference work entry


Empirical studies of social interactions address a multitude of definitional, econometric and measurement issues associated with the role of interpersonal and social group influences in economic decisions. Applications range from studies of crime patterns, neighbourhood influences on upbringing and conformist behaviour, mutual influences among classmates and keeping up with roommates in colleges regarding academic and social activities, to herding and to learning about social services. The article reviews several instances of successful identification of effects emanating from others’ behaviour as distinct from characteristics of others. Data-sets with increasingly rich contextual information will allow estimation of complex models of economic decisions.


Congestion Contextual effects Correlated effects Endogenous effects Herding Identification Information sharing Innovation Laboratory experiments Linear models Multiplier effects Natural experiments Neighbourhood effects Neighbours Partial identification Pecuniary externalities Peer effects Rational expectations Reflection problem Self-selection Social capital Social equilibrium Social interactions Social multipliers Social norms Unobservables Well-being 

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Yannis M. Ioannides
    • 1
  1. 1.