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. But the linear-in-means model masks considerable heterogeneity in the effects experienced by different types of students …. Using nonlinear models, one prevalent finding is larger peer effects in which high ability students benefit from the … presence of other high ability students. Studies that stratify students by race and ability often find that students are …
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We develop a Roy model of social interactions in which individuals sort into peer groups based on comparative advantage. Two key results emerge: First, when comparative advantage is the guiding principle of peer group organization, the effect of moving a student into an environment with...
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