Portal de Periódicos da CAPES

The Social Multiplier

2003; Oxford University Press; Volume: 1; Issue: 2-3 Linguagem: Inglês

10.1162/154247603322390982

1542-4774

Edward L. Glaeser, Bruce Sacerdote, José Scheinkman,

Income, Poverty, and Inequality

Aggregate data is often used to make inferences about individual level behavior. If there are social interactions in which one person's actions influence his neighbor's incentives or information, then these inferences are inappropriate. The presence of positive social interactions, or strategic complementarities, implies the existence of a social multiplier where aggregate relationships will overstate individual elasticities. We present a brief model and then estimate the size of the social multiplier in three areas: the impact of education on wages, the impact of demographics on crime and group membership among Dartmouth roommates. In these contexts, there is a significant social multiplier.