Template-type: ReDif-Paper 1.0 Author-Name: Feld, J.F. Author-workplace-name: Research Centre for Educ and Labour Mark Author-Name: Zölitz, U.N. Author-workplace-name: Research Centre for Educ and Labour Mark Title: Understanding peer effects - On the nature, estimation and channels of peer effects Abstract: This paper estimates peer effects in a university context where students are randomly assigned to sections. While students benefit from better peers on average, low-achieving students are harmed by high-achieving peers. Analyzing students’ course evaluations suggests that peer effects are driven by improved group interaction rather than adjustments in teachers’ behavior or students’ effort. We further show, building on Angrist (2014), that classical measurement error in a setting where group assignment is systematic can lead to substantial overestimation of peer effects. With random assignment, as is the case in our setting, estimates are only attenuated. Series: GSBE Research Memoranda Creation-Date: 20160101 Number: 002 File-URL: https://cris.maastrichtuniversity.nl/ws/files/1573317/guid-0d5d0529-3667-4188-8cbb-cc539415d7ca-ASSET1.0.pdf File-Format: application/pdf File-Size: 1179606 Handle: Repec:unm:umagsb:2016002 DOI: 10.26481/umagsb.2016002