This paper reviews the theoretical and empirical foundations of peer and network effects, aiming to bridge insights from both literatures. We first analyze the microfoundations of peer effects through linear-quadratic network games, linking equilibrium behavior to network centrality and...

Widening income disparities, higher corruption and larger informality in many emerging market and developing economies (EMDE) including Latin America, all with pressing and mounting fiscal problems, have rekindled interest in the empirical analysis of the key factors determining the occurrence...