This paper provides evidence on peer effects in standardized tests by exploiting a unique data set on social networks in Uruguayan primary schools. The identification method enables one to disentangle endogenous from contextual effects via instrumental variables that emerge naturally from the...

This paper analyses the relationship between income inequality and economic growth through fiscal policy. To this end, we present and estimate two systems of structural equiation with error components through which gross income inequality determines different fiscal policy outcomes, which...