linear-in-means model

This paper proposes a model-based empirical method for a policymaker to effectively target adolescents with a prevention program to reduce risky behavior such as marijuana consumption. We assume that peer pressure is the mechanism that determines how social interactions influence these behaviors.

The command netivreg implements the Generalized Three-Stage Least Squares (G3SLS) estimator and the Generalized Method of Moments (GMM) estimator for the endogenous linear-in-means model.