If my buddies use drugs, will I? Peer effects on substance consumption among teenagers

Abstract: Adolescents are a population group especially vulnerable to peer pressure (they want to fit in their social group). During adolescence, friendship intensifies and teens start to increasingly interact with friends, shaping their attitudes and identity. Using the data from a Spanish survey on drug consumption among students aged 14-18 in 2014, this paper extends the previous literature that measures peer effects by adopting a new methodological strategy proposing two novel instrumental variables in the literature. The results show how the consumption of tobacco, marijuana and alcohol increases if peers consume them.