Does the Rotten Child Spoil His Companion? Spatial Peer Effects Among Children in Rural India

This paper identifies the effect of neighborhood peer groups on childhood skill acquisition using observational data. We incorporate spatial peer interaction, defined as a child’s nearest geographical neighbors, into a production function of child cognitive development in Andhra Pradesh, India. Our peer group construction takes the form of directed networks, whose structure allows us to identify peer effects and enables us to disentangle endogenous effects from contextual effects. We exploit variation over time to avoid confounding correlated with social effects. Our results suggest that spatial peer and neighborhood effects are strongly positively associated with a child’s cognitive skill formation. These peer effects hold even when we consider an alternative IV-based identification strategy and different variations to network size. Further, we find that the presence of peer groups helps provide insurance against the negative impact of idiosyncratic shocks to child learning.Children, peer effects, cognitive skills, India

Does the Rotten Child Spoil His Companion? Spatial Peer Effects Among Children in Rural India

This paper identifies the effect of neighborhood peer groups on childhood skill acquisition using observational data. We incorporate spatial peer interaction, defined as a child's nearest geographical neighbors, into a production function of child cognitive development in Andhra Pradesh, India. Our peer group definition takes the form of networks, whose structure allows us to separately identify endogenous peer effects and contextual effects. We exploit variation over time to avoid confounding correlated with social effects. Our results suggest that spatial peer and neighborhood effects are strongly positively associated with a child's cognitive skill formation. Further, we find that the presence of peer groups helps provide insurance against the negative impact of idiosyncratic shocks to child learning. We show that peer effects are robust to different specifications of peer interactions and investigate the sensitivity of our estimates to potential mis-specification of the network structure using Monte Carlo experiments. --Children,peer effects,cognitive skills,India

Neighbours and extension agents in Ethiopia: who matters more for technology diffusion?

Improving agricultural productivity is seen as vital to economic growth in poor countries, particularly in sub-Saharan Africa where productivity growth has lagged behind that of other continents. The focus has therefore been on new technologies, particularly the adoption and diffusion of improved seed varieties and the increased use of fertiliser, supported by investments in effective extension services. It is important to understand how these new technologies spread and the effectiveness of extension services in this process

Secession with natural resources

We look at the formation of new Indian states in 2001 to uncover the effects of political secession on the comparative economic performance of natural resource rich and natural resource poor areas. Resource rich constituencies fared comparatively worse within new states that inherited a relatively larger proportion of natural resources. We argue that these patterns reflect how political reorganisation affected the quality of state governance of natural resources. We describe a model of collusion between state politicians and resource rent recipients that can account for the relationships we see in the data between natural resource abundance and post-breakup local outcomes

The heterogeneous effect of software patents on expected returns: evidence from India

We contribute to the literature on the role of patenting for economic development by analyzing the impact of patent protection for software in India. We find that a proposed broadening of patent eligibility to include software in 2004 had a large positive effect on average returns for listed software companies in India. An unanticipated reversal of this proposed policy change in 2005 resulted in substantial negative returns. We illustrate substantial heterogeneity in the dynamics of these effects across the sequence of events. We also find smaller firms to have been systematically and most significantly affected by the tightening of patent law with regard to software patents

Clash of Civilizations: Impact of Culture on Militarized Interstate Dispute

Abstract Huntington (1993a, 1993b, 1998, 2000) argued that the fundamental source of con ‡ict in the post-Cold War world will not be primarily ideological or primarily economic, but the great divisions among humankind and the dominating source of con ‡ict will be cultural and religious; as such, the primary axis of con‡ict in the future will be along civilizational lines. To that end, in addition to confronting several of Huntington's hypotheses we scrutinize the impact of culture on militarized interstate disputes and test whether countries that belong to di¤erent civilizations tend to be more involved in con ‡ict than countries that belong to the same civilization. We show that over the period of 1816-2001 civilizational dissimilarity in a dyad increases the probability of con ‡ict calculated at the means of the variables by up to 62.8 percentage points. More strikingly, even after controlling for geographic, political, military and economic factors, being part of di¤erent civilizations in the post-Cold War period brings about 71.2 percentage points higher con ‡ict probability than belonging to the same civilization while it reduces the probability of con ‡ict by 25.7 percentage points during the Cold War. JEL Classi…cation: D74, N40, N70, Z10

Does the rotten child spoil his companion?: spatial peer effects among children in rural india

This paper identifies the effect of neighborhood peer groups on childhood skill acquisition using observational data. We incorporate spatial peer interaction, defined as a child’s nearest geographical neighbors, into a production function of child cognitive development in Andhra Pradesh, India. Our peer group definition takes the form of networks, whose structure allows us to separately identify endogenous peer effects and contextual effects. We exploit variation over time to avoid confounding correlated with social effects. Our results suggest that spatial peer and neighborhood effects are strongly positively associated with a child’s cognitive skill formation. Further, we find that the presence of peer groups helps provide insurance against the negative impact of idiosyncratic shocks to child learning. We show that peer effects are robust to different specifications of peer interactions and investigate the sensitivity of our estimates to potential mis-specification of the network structure using Monte Carlo experiments