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This paper evaluates the peer effects on individual academic performance. The identification strategy considers the architecture of friendship networks within classrooms, in addition to group and individual fixed effects. Estimates of spatial autoregressive models show that an increase of one standard deviation (sd) in peers’ math grade improves by 6% sds the student’s grade. Furthermore, when we also consider the indirect friendship bonds, the aggregate peer impact raises to 45% sds of the individual math grade.

Peer effects and scholastic achievement: spatial models estimates using the student friendship network at the classroom level