Analysis of peer effects on consumption in rural China based on social networks

Jisheng Yang, Jiaolong Li and Yanjun Cao

Applied Economics, 2023, vol. 55, issue 6, 617-635

Abstract: This study empirically analyses peer effects on daily essential consumption and social related expenditure in rural China, where clan clustering often characterizes villages. The proportion of peer effects and autonomous behaviour in households’ consumption behaviour is estimated by quasi-maximum likelihood estimation of the spatial autoregressive model, which includes the differences in characteristics between the household and its peers. It shows that, households put more weight on peer effects in daily essentials consumption, whereas more weight is put on autonomous behaviour in social related expenditure. In addition, peer effects may be significantly overestimated, especially for clothing and human affairs expenditure, if the differences in characteristics between the household and its peers are not considered.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2022.2092592 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:55:y:2023:i:6:p:617-635

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2022.2092592

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().