Peer effects in rural housing demand: Evidence from China

Anquan Zhang, Pengfei Ni and Chen Ling

China Economic Review, 2022, vol. 73, issue C

Abstract: This paper utilizes data from the China Household Finance Survey 2011 to study peer effects in housing demand in rural China. We find that focal households' housing consumption is heavily influenced by peer households' housing consumption. Evidence from placebo tests, IV estimates and robust tests suggests that the relationship is causal. In addition, we show that status seeking and social learning play important roles in determining peer effects in the demand for rural houses. Finally, we explore the heterogeneity in peer effects and determine that the leading mechanism is status seeking.

Keywords: Peer effects; Rural housing demand; Social learning; Status seeking (search for similar items in EconPapers)
JEL-codes: C26 D12 R21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:73:y:2022:i:c:s1043951x22000451

DOI: 10.1016/j.chieco.2022.101787

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