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Identifying Peer Effects Using Gold Rushers

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  • John Lynham

    (University of Hawaii at Manoa, Department of Economics; University of Hawaii Economic Research Organization)

Abstract

Fishers pay attention to where other fishers are fishing, suggesting the potential for peer effects. But peer effects are difficult to identify without an exogenous shifter of peer group membership. We propose an identification strategy that exploits a shifter of peer group membership: gold rushes of new entrants. Following an exchange-rate-induced gold rush in an American fishery, we find that new entrants are strongly influenced by the location choices of their peers. Over-identification tests suggest that the assumptions underlying identification hold when new entrants are inexperienced but identification is lost as new entrants start to potentially influence their peers.

Suggested Citation

  • John Lynham, 2016. "Identifying Peer Effects Using Gold Rushers," Working Papers 2016-15, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2016-15
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    Cited by:

    1. Emilio Castillo, 2020. "Mineral Exploration and the Discovery of New Deposits," Working Papers 2020-06, Colorado School of Mines, Division of Economics and Business.
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    4. Castillo, Emilio & Roa, Cintia, 2021. "Defining geological maturity: The effect of discoveries on early-stage mineral exploration," Resources Policy, Elsevier, vol. 74(C).

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    More about this item

    Keywords

    Peer Effects; Gold Rushes; Resource Extraction;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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