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(i) What are the implications of peer group effects for mixing and segregation? Illustrate your answer with a simple model

Economics Feb 06, 2022

(i) What are the implications of peer group effects for mixing and segregation? Illustrate your answer
with a simple model. (ii) Explain how the Moving To Opportunity experiment is evaluated by Katz et
al. (2000), “Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment.”
Explain your answer in detail. What do the findings teach us about neighbourhood effects?

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